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

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 Selling price per unit Variable cost per unit Plastic injection molding machine processing 240 $ 100 $ 370 $ 255 $ 225 105 7minutes 5 minutes 7 minutes 15 pounds 7 pounds 10 pounds 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 3Required 4 Required 5 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? (Round your final answers to 2 decimal places.) uar Golf ishing Contribution margin per minute of the constrained resource per minute per minute per minute

Explanation / Answer

Contribution margin per minute :

Contribution margin per pound :

Ski guard Gold guard Fishing guard Selling price per unit 240 370 225 Variable cost per unit 100 255 105 Contribution margin per unit 140 115 120 Minute per unit 7 5 7 Contribution margin per minute 20 23 17.14

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