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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 Guard $260 $100 6 min 15 kg Golf Guard $350 $150 12 min 15 kg Fishing Guard $245 $105 11 min 12 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?

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 Guard $260 $100 6 min 15 kg Golf Guard $350 $150 12 min 15 kg Fishing Guard $245 $105 11 min 12 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2-a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection moulding machine is no longer the bottleneck. Instead, the constraint is the total available kilograms of plastic pellets. 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 Kgs of plastic pellets required to produce one unit Contribution margin per unit of the constrained resource $ Ski Guard kgs 0 per kg 0$ Golf Guard kgs o per kg Fishing Guard 0 $ kgs 0 per kg 0
Transcribed Image Text:2-a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection moulding machine is no longer the bottleneck. Instead, the constraint is the total available kilograms of plastic pellets. 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 Kgs of plastic pellets required to produce one unit Contribution margin per unit of the constrained resource $ Ski Guard kgs 0 per kg 0$ Golf Guard kgs o per kg Fishing Guard 0 $ kgs 0 per kg 0
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 Guard $260 $100 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 6 min 15 kg Golf Guard $350 $150 $ 12 min 15 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? Fishing Guard $245 $105 Ski Guard 11 min 12 kg minutes 0 per minute 0 $ Golf Guard minutes 0 per minute 0 $ Fishing Guard minutes 0 per minute 0
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 Guard $260 $100 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 6 min 15 kg Golf Guard $350 $150 $ 12 min 15 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? Fishing Guard $245 $105 Ski Guard 11 min 12 kg minutes 0 per minute 0 $ Golf Guard minutes 0 per minute 0 $ Fishing Guard minutes 0 per minute 0
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