Exercise 12-5 (5 pt) Saved Help Save & Exit Submit Check my work Outdoor Luggage

Question

Exercise 12-5 (5 pt) Saved Help Save & Exit Submit Check my work Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below 5 points Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Plastic injection molding machine processing 230 S 160 S 310 S 190 S 245 115 11 minutes 9 minutes 10 minutes 7 pounds 13 pounds 14 pounds time required to produce one unit Pounds of plastic pellets per unit eBook 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 tol available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? Hint Print 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 1 Required 2 Required 3 Required 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 aces Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Required 1 Required 2 > Graw Prev 10f 1 Next >

Explanation / Answer

1 Ski guard Golf guard Fishing guard Selling price per unit 230 310 245 Variable cost per unit 160 190 115 Contribution margin per unit 70 120 130 Plastic injection molding machine processing time required to produce one unit 11 9 10 Contribution margin per unit of the constrained resource 6.36 13.33 13 2 Golf guard 3 Ski guard Golf guard Fishing guard Selling price per unit 230 310 245 Variable cost per unit 160 190 115 Contribution margin per unit 70 120 130 Pounds of plastic pellets required to produce one unit 7 13 14 Contribution margin per unit of the constrained resource 10.00 9.23 9.29 4 Ski guard 5 Fishing guard

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