Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit

Question

Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Plastic injection molding machine processing 205 135 9 minutes 12 minutes 11 minutes 12 pounds 15 pounds 11 pounds 260 $ 120 $ 330 $ 180 $ time required to produce one unit Pounds of plastic pellets per unit Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4Required 5 If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, howw much contribution margin per minute of the constrained resource is earned by each product? (Round your final answers to 2 decimal places.) Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute

Explanation / Answer

Contribution margin per minute of the constrained resources :

Contribution margin per pound of the constrained resources :

Ski guard Golf Guard Fishing guard Selling price per unit 260 330 205 Variable cost per unit 120 180 135 Contribution margin per unit 140 150 70 Minute per unit 9 12 11 Contribution margin per minute 15.56 12.5 6.36

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