Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit Required: Ski Golf Fishing Guard Guard Guard $230 $310 $160 $190 $245 $115 11 min 7 kg 9 min 13 kg 10 min 14 kg 1-a. The total time available on the plastic injection moulding 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? Selling price per unit Ski Guard Golf Guard Fishing Guard

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most
popular models appear below.
Selling price per unit
Variable cost per unit
Plastic injection moulding machine
processing time required per unit
Kgs of plastic pellets per unit
Ski
Golf
Guard
Guard
$230
$310
$160
$190
Fishing
Guard
$245
$115
11 min
7 kg
9 min
13 kg
10 min
14 kg
Required:
1-a. The total time available on the plastic injection moulding 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?
Selling price per unit
Variable 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
1-b. Which product would be the most profitable use of this constraint?
Golf Guard
Ski Guard
Ski Guard
0
$
minutes
0 per minute
Golf Guard
Fishing Guard
0
$
minutes
0 per minute
0
minutes
0 per minute
Transcribed Image Text:Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit Ski Golf Guard Guard $230 $310 $160 $190 Fishing Guard $245 $115 11 min 7 kg 9 min 13 kg 10 min 14 kg Required: 1-a. The total time available on the plastic injection moulding 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? Selling price per unit Variable 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 1-b. Which product would be the most profitable use of this constraint? Golf Guard Ski Guard Ski Guard 0 $ minutes 0 per minute Golf Guard Fishing Guard 0 $ minutes 0 per minute 0 minutes 0 per minute
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