Chapter 6 adet EXERCISE 6-5 Volume Trade-Off Decisions L06-5 5-00 notele uso ex 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 molding machine processing time required to produce one unit. Pounds of plastic pellets per unit. $200 $60 2. 3. Gord $300 $140 Fishing Guard $255 $55 2 minutes 5 minutes 4 minutes 7 pounds 4 pounds 8 pounds Required: 1. If we assume that the total time available on the plastic injection molding machine is the con- straint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? Which product offers the most profitable use of the plastic injection molding machine? 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? adi soubong 5. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? pllqu abiatua.pdi bluor2 longue bborb grindablu...zomiga yot boesdong araw zupietures on? 10 D
Chapter 6 adet EXERCISE 6-5 Volume Trade-Off Decisions L06-5 5-00 notele uso ex 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 molding machine processing time required to produce one unit. Pounds of plastic pellets per unit. $200 $60 2. 3. Gord $300 $140 Fishing Guard $255 $55 2 minutes 5 minutes 4 minutes 7 pounds 4 pounds 8 pounds Required: 1. If we assume that the total time available on the plastic injection molding machine is the con- straint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? Which product offers the most profitable use of the plastic injection molding machine? 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? adi soubong 5. Which product has the largest contribution margin per unit? Why wouldn't this product be the most profitable use of the constrained resource in either case? pllqu abiatua.pdi bluor2 longue bborb grindablu...zomiga yot boesdong araw zupietures on? 10 D
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chapter 6 arost
EXERCISE 6-5 Volume Trade-Off Decisions L06-5
5-00 nolejad yuld exi
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 molding machine processing
time required to produce one unit.
Pounds of plastic pellets per unit.
Che
2.
3.
4.
5.
$200
$60
$300
$140
Fishing
Guard
Jenav
$255
$55
2 minutes 5 minutes 4 minutes
7 pounds 4 pounds 8 pounds
Required:
1.
If we assume that the total time available on the plastic injection molding machine is the con-
straint in the production process, how much contribution margin per minute of the constrained
resource is earned by each product?
Which product offers the most profitable use of the plastic injection molding machine?
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?
Which product offers the most profitable use of the plastic pellets?
ad) saubong
Which product has the largest contribution margin per unit? Why wouldn't this product be the
most profitable use of the constrained resource in either case?
biztuo.sdi.bluon2
onquo hoorb grindar sluca..bd.conign vestboesdoing araw zupietothes ont que
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