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.

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? (Round your answers to 2 decimal places.)

A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

per pound

Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.

Explanation / Answer

1a

1a

Ski Guard Golf Guard Fishing Guard Selling price per unit 250 320 215 Variable cost per unit 110 210 155 Contribution margin per unit 140 110 60 Plastic injection molding machine processing time required to produce one unit ( in Min ) 14 13 11 Contribution margin per unit of the considered resource 10.00 8.46 5.45 1b SKI GUARD The most profitable product with the use of this constraint will be SKI guard with the maximum contribution margin. 1c fishing guard The least profitable product would be fishing guard 2a Ski Guard Golf Guard Fishing Guard Selling price per unit 250 320 215 Variable cost per unit 110 210 155 Contribution margin per unit 140 110 60 Pounds of plastic pallets per unit 9 10 14 Contribution margin per unit of the considered resource 15.56 11.00 4.29 2b Ski Guard The most profitable product with the use of this constraint will be SKi guard with the maximum contribution margin. 2c Fishing The least profitable product would be Fishing guard 3) largest contribution margin Ski guard

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