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

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

Problem 1Q

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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. Ski Golf Fishing Guard Guard Guard 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 $ $ 260 $ 100 $ 350 $ $ 245 150 105 6 minutes 12 minutes 11 minutes 15 pounds 20 pounds 12 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? 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…
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 Selling price per unit $ 310 Variable cost per unit $ 150 $ 330 $ 130 Fishing Guard $ 275 $ 85 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 8 minutes 7 pounds 15 minutes 5 minutes 9 pounds 10 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? 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…
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 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 1 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…
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 Required 1 Complete this question by entering your answers in the tabs below. Required 2 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 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…
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 Ski Guard $ 230 $ 80 Golf Guard $ 320 $ 160 12 minutes 14 pounds Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 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? Fishing Guard $ 275 $ 140 8 minutes 15 pounds 5 minutes 13 pounds
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 Ski Guard $ 230 $80 Golf Guard $ 320 $ 160 12 minutes 14 pounds Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 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…
Leno Company makes swimsuits and sells these suits directly to retailers. Although Leno has a variety of suits, it does not make the All- Body suit used by highly skilled swimmers. The market research department believes that a strong market exists for this type of suit. The department indicates that the All-Body suit would sell for approximately $100. Glven its experience, Leno believes the All-Body suit would have the following manufacturing costs. Direct materials $29 Directlabor 27 Manufacturing overhead 44 Total costs $100
Drone Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large retailers. The line consists of four models of drones. The following data is available regarding the models: DCI Selling Price Variable Cost Demand/Year Model per Unit per Unit (units) Model D1 $735 $115 1,535 Model D2 $515 $110 2,865 Model D3 $625 $105 3,535 Model D4 $765 $135 3,300 Drone Concepts is considering the addition of a fifth model to its line of drones. This model would be sold to retailers for $950. The variable cost of this unit is $415. The demand for the new Model D5 is estimated to be 2,000 units per year. Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by Drone Concepts (10 percent from Model D1, 30 percent from Model D2, 40 percent from Model D3, and 20 percent from Model D4). Drone Concepts will incur a fixed cost of $350,000 to add the new model to the line. Based on the preceding data, should DCI add the new…
Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows: Wood Plastic Graphite Machine hours per unit 1.25 1.0 1.5 Selling price per unit P100 P120 P200 Variable mfg. cost per unit 45 50 100 Variable selling cost per unit 15 26 36 In what order should the snowboard product lines be produced? Wood, Plastic, then Graphite Plastic, Graphite, then Wood Graphite, Wood, then Plastic none of the above Group of answer choices 1 2 3 4
sing ABC, the total manufacturing costs per unit for product SuperPro is?
Buck Products, located in Charleston, South Carolina,produces two lines of electric toothbrushes: Deluxe and Standard. Because Buck can sell all the toothbrushes it produces, the owners are expanding the plant. They are deciding which product line to emphasize. To make this decision, they assemble the following data: Per Unit Deluxe Toothbrush Standard Toothbrush Sales price. . . . . . . . . . . . . . . . . . Deluxe $92 Standard $44 Variable expenses. . . . . . . . . . . . Deluxe 22 Standard 15 Contribution margin. . . . . . . . . . Deluxe $70 Standard $29 Contribution margin ratio. . . . . . Deluxe 76.1% Standard 65.9% After expansion, the factory will have a production capacity of 4,800 machine hours per month. The plant can manufacture either 56 Standard electric toothbrushes or 27 Deluxe electric toothbrushes per machine hour. Requirements 1. Identify the constraining factor for Buck Products. 2. Prepare an analysis to show which product line to emphasize.…
Williams Gear makes and sells three types of computer laptop sleeves: leather, fabric, and plastic. Management is trying to determine the most profitable mix. Sales prices, demand, and use of manufacturing inputs follow: Leather Fabric Plastic Sales price $ 160 $ 70 $ 40 Maximum quarterly demand (sleeves) 2,500 12,500 20,000 Input requirements per unit Direct material quantity per sleeve (ounces) 16 6 10 Direct material price per ounce of material $ 4.25 $ 6.00 $ 2.20 Direct labor quantity per sleeve (hours) 0.9 0.4 0.3 Direct labor price per hour $ 35 $ 35 $ 35 Other Costs Variable costs Factory overhead $ 5 per direct labor-hour Marketing $ 6% of sales price Quarterly fixed costs Manufacturing $ 70,000 Marketing $ 15,000 Administration $ 60,000 Williams has two production limits: (1) the demand for the individual sleeves (see maximum quarterly demand) and (2) 10,000 direct labor-hours per quarter caused by…