Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Dat

Question

Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below Ski Guard Golf Guard Fishing Guard $310 $170 $235 $55 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit $240 $80 11 minutes 9 pounds 8 minutes 6 pounds 6 minutes 15 pounds Required 1a. The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Contribution margin per unit Plastic injection molding machine processing time required to produce one unit Contribution margin per unit of the constrained resource 0 $ 0 $ 0 minutes minutes minutes 0 per minute 0 per minute 0 per minute

Explanation / Answer

OUTDOOR LUGGAGE INC. Ski Guard Golf Guard Fishing Guard 1a Selling Price Per Unit $ 240.00 $            310.00 $            235.00 Variable cost Per Unit $    80.00 $            170.00 $              55.00 Contribution Margin Per Unit $ 160.00 $            140.00 $            180.00 Constraint(Time required to produce one unit) 11 8 6 Contribution margin per unit of constraint resource $    14.55 $               17.50 $              30.00 1b Fishing Guard would be the most profitable use of this constraint 1c Ski Guard would be the least profitable use of this constraint Models Ski Guard Golf Guard Fishing Guard 2a Selling Price Per Unit $ 240.00 $            310.00 $            235.00 Variable cost Per Unit $    80.00 $            170.00 $              55.00 Contribution Margin Per Unit $ 160.00 $            140.00 $            180.00 Constraint(Pounds of Plastic Pellets to produce one unit) 9 6 15 Contribution margin per unit of constraint resource $    17.78 $               23.33 $              12.00 2b Golf Guard would be most profitable use of this constraint 2c Fishing Guard would be least profitable use of this constraint 3 Fishing Guard has the largest contribution margin per unit

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