i Chrome File Edit ie History Bookmarks People Window Help By Garrison CH 12 Exe

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i Chrome File Edit ie History Bookmarks People Window Help By Garrison CH 12 Exercises l@ ezto.mheducation.com/hm.tpx D, Sun 2:01 PM a E 5. 4.28 points 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 Golf Fishing $260 $100 S350 S150 S245 $105 ling price per unit Variable cost per unit Plastic injecticn molding machine processing time required to produce one unit Pounds of plastic pellets per unit 6 minutes 15 pounds 12 minutes 15 pounds 11 minutes 12 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 Varable 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 per minute per minute 0 per minute 1b. Which product would be the most profitable use of this constraint? O Ski Guard Fishing Guard Golf Guard 5

Explanation / Answer

1a Ski Guard Golf Guard Fishing Guard Selling price per unit 260 350 245 Variable cost per unit 100 150 105 Contribution margin per unit 160 200 140 Plastic injection molding machine processing time required to produce one unit 6 12 11 Contribution margin per unit of the constrained resource 26.67 16.67 12.73 b Ski-guard c Fishing Guard 2a Ski Guard Golf Guard Fishing Guard Selling price per unit 260 350 245 Variable cost per unit 100 150 105 Contribution margin per unit 160 200 140 Pounds of plastic pellets required to produce one unit 15 15 12 Contribution margin per unit of the constrained resource 10.67 13.33 11.67 2b Golf Guard 2c Ski-guard 3 Golf Guard Answers have been rounded off to 2 decimal places

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