Outdoor Luggage, Incorporated, makes highend hardsided luggage for sports equipment. Data concerning three of the company's...
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Outdoor Luggage, Incorporated, makes highend hardsided 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 $ 240 Variable cost per unit $ 100 $ 370 $ 255 $ 225 $ 105 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 15 pounds 5 minutes 7 minutes 7 pounds 10 pounds 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 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 places.) Contribution margin per minute of the constrained resource Ski Guard per minute Golf Guard per minute < Required 1 Required 2 > Fishing Guard per minute Outdoor Luggage, Incorporated, makes highend hardsided 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 $ 240 Variable cost per unit $ 100 $ 370 $ 255 $ 225 $ 105 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 15 pounds 5 minutes 7 minutes 7 pounds 10 pounds 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 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 places.) Contribution margin per minute of the constrained resource Ski Guard per minute Golf Guard per minute < Required 1 Required 2 > Fishing Guard per minute
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1 Contribution Margin per Minute of Constrained Resource Ski Guard Selling price per unit 240 Variable cost per unit 100 Plastic injection molding mac... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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