Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company'smost popular models appear below:Selling price per unitVariable cost per unitSki Guard$ 230$80Golf Guard$ 320$ 16012 minutes14 poundsPlastic injection molding machine processing time required toproduce one unitPounds of plastic pellets per unitRequired:1. If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of theconstrained 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 thetotal available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by eachproduct?4. Which product offers the most profitable use of the plastic pellets?5. Which product has the largest contribution margin per unit?8 minutesFishing Guard$ 275$ 14015 pounds5 minutes13 pounds

The objective of the question is to calculate the contribution margin per minute of the constrained…

Answered: Outdoor Luggage, Incorporated, makes…

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, 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…
Dd2. How do you solve C for leather?
bok int int rences 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 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Required 1 Required 2 Required 3 Required 4 Ski Guard 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…
mework int Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat-Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are erences Mc Graw Hill Price per unit Variable cost per unit Machine minutes per unit °F artly cloudy The one machine that is used to produce both models has a capacity of 29,700 machine-minutes per quarter. Fixed manufacturing costs per quarter are $355,000. Required A Required B Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter? Complete this question by entering your answers in the tabs below. Sport $195 $ 72 6 Sport Model Collegiate Model W Suppose that the maximum unit sales in a quarter…
Theory of constraints: Shera company is manufacturing furniture, cabinets and tables in particular. Currently, the company can sell as many units as it can produce. However, it is constrained by its availability of machine-hour capacity. On a per unit basis, sales price for cabinets and tables are $80 and $160, respectively. With variable costs of $60 and $155. Moreover, it requires 1 1/2 machine hours to manufacture cabinets while 2 1/2 machine hours are needed for tables. What is the contribution per unit of tables and cabinets considering the limited machine hours
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 $ 240 $ 370 $ 225 Variable cost per unit $ 100 $ 255 $ 105 Plastic injection molding machine processing time required to produce one unit 7 minutes 5 minutes 7 minutes Pounds of plastic pellets per unit 15 pounds 7 pounds 10 pounds 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? 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?
Windu Enterprises uses a manufacturing process that is very labor intensive to manufacture its multicolored laser vegetable slicers. Windu is considering a change to a more automated manufacturing process. The cost structure information for Windu's options are listed below. Windu sells its only product for $25 per unit. Costs Fixed Manufacturing Costs Variable Manufacturing Cost per unit Current Method $180,000 $15 Automated Method $240,000 $13 Required. 1. Compute the breakeven points for both production methods 2. Compute the point of indifference for these two production methods (i.e. at what number of units of production will income be equal for both methods?) 3. Calculate the Operating Leverage Factor for both methods at the point of indifference + 4. If Windu's management intends to produce and sell 35,000 units, which production method should they use? 5. By how much per unit (nearest $.01) would the current method's variable cost need to decrease in order for management to be…
Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the Coaster and the Traveler, in one of the WRC factories. Both models require the same assembling operations. The difference between the models is the cost of materials. The following data are available for the second quarter. Number of bikes assembled Coaster 750 Traveler 450 Total 1,200 Materials cost per bike Other costs: $ 638 $ 1,214 $ 313,800 396,800 261,800 354,800 Direct labor Depreciation and lease Supervision and control Factory administration Required: Witt Recreation Company uses operations costing and assigns conversion costs based on the number of units assembled. Compute the cost of each model assembled in the second quarter. Note: Do not round intermediate calculations. Round your final answers to nearest whole number. Operation cost Materials cost Total cost Unit cost Coaster Traveler Total $ 0
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Wing Sporting Goods (WSG) is a small company that makes two models of a metal baseball bat—Sport and Collegiate. Both models are produced on a single machine. The price and costs of the two models are Sport Collegiate Price per unit $ 285 $ 470 Variable cost per unit $ 108 $ 188 Machine minutes per unit 6 15 The one machine that is used to produce both models has a capacity of 35,100 machine-minutes per quarter. Fixed manufacturing costs per quarter are $445,000. Required: a. Suppose that the maximum unit sales in a quarter that WSG can achieve is 6,000 units of each product. How many units of each model should WSG produce in a quarter? b. Suppose that the maximum unit sales in a quarter that WSG can achieve is 4,200 units of each product. How many units of each model should WSG produce in a quarter?
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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 Gi $ 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 9 pounds 5 minu 10 poun 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.…

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