Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] Outdoor Luggage, Incorporated, 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 Required 1 Complete this question by entering your answers in the tabs below. Required 2 Ski Guard $ 310 $ 70 Required 3 Required 4 11 minutes 14 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? Required 5 Contribution margin per minute of the constrained resource 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? Golf Guard $390 $ 160 11 minutes 7 pounds Ski Guard per minute Fishing Guard $ 215 $95 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.) 2 minutes Golf Guard 15 pounds per minute Fishing Guard per minute
Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] Outdoor Luggage, Incorporated, 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 Required 1 Complete this question by entering your answers in the tabs below. Required 2 Ski Guard $ 310 $ 70 Required 3 Required 4 11 minutes 14 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? Required 5 Contribution margin per minute of the constrained resource 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? Golf Guard $390 $ 160 11 minutes 7 pounds Ski Guard per minute Fishing Guard $ 215 $95 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.) 2 minutes Golf Guard 15 pounds per minute Fishing Guard per minute
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5]
Outdoor Luggage, Incorporated, 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
Required 1
Required 2
Complete this question by entering your answers in the tabs below.
Required 3
Ski Guard
Required 4
$ 310
$ 70
11 minutes
14 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?
Required 5
Contribution margin per minute of the constrained resource
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?
Golf Guard
$ 390
$ 160
11 minutes
7 pounds
Ski Guard
per minute
Fishing Guard
$215
$95
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.)
2 minutes
Golf Guard
15 pounds
per minute
Fishing Guard
per minute](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad61fb23-6772-4c68-a944-71325d2213c5%2F7fe5f0af-124c-4026-8f22-05e45e095ad2%2F74gwy8_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5]
Outdoor Luggage, Incorporated, 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
Required 1
Required 2
Complete this question by entering your answers in the tabs below.
Required 3
Ski Guard
Required 4
$ 310
$ 70
11 minutes
14 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?
Required 5
Contribution margin per minute of the constrained resource
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?
Golf Guard
$ 390
$ 160
11 minutes
7 pounds
Ski Guard
per minute
Fishing Guard
$215
$95
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.)
2 minutes
Golf Guard
15 pounds
per minute
Fishing Guard
per minute
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