Exercise 13-5 (Algo) Volume Trade-Off Decisions [LO13-5] Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below: Ski Guard Golf Guard Fishing Guard Selling price per unit $ 220 Variable cost per unit $ 140 $ 330 $ 260 $ 200 $ 115 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 4 minutes 12 pounds 12 minutes 15 pounds 9 minutes 13 pounds Required: 1. If the total time available on the plastic injection molding machine is the constraint, 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 a severe shortage of plastic pellets required the company to cut back 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 the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product? Note: Round your final answers to 2 decimal places. Contribution margin per minute of the constrained resource Ski Guard Golf Guard Fishing Guard per minute per minute per minute
Exercise 13-5 (Algo) Volume Trade-Off Decisions [LO13-5] Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below: Ski Guard Golf Guard Fishing Guard Selling price per unit $ 220 Variable cost per unit $ 140 $ 330 $ 260 $ 200 $ 115 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 4 minutes 12 pounds 12 minutes 15 pounds 9 minutes 13 pounds Required: 1. If the total time available on the plastic injection molding machine is the constraint, 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 a severe shortage of plastic pellets required the company to cut back 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 the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product? Note: Round your final answers to 2 decimal places. Contribution margin per minute of the constrained resource Ski Guard Golf Guard Fishing Guard per minute per minute per minute
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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