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 $ 270 Variable cost per unit $ 155 $ 350 $ 210 $ 185 $ 65 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 11 pounds 9 minutes 15 pounds 12 minutes 13 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 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?
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 $ 270 Variable cost per unit $ 155 $ 350 $ 210 $ 185 $ 65 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 11 pounds 9 minutes 15 pounds 12 minutes 13 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 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![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.
Ski Guard
Golf Guard
Fishing Guard
Selling price per unit
$ 270
Variable cost per unit
$ 155
$ 350
$ 210
$ 185
$ 65
Plastic injection molding machine processing time
required to produce one unit
Pounds of plastic pellets per unit
7 minutes
11 pounds
9 minutes
15 pounds
12 minutes
13 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 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 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
the constrained resource is earned by each product? (Round your final answers to 2 decimal places.)
Contribution margin per minute of the constrained resource
Ski Guard
per minute
Golf Guard
per minute
Fishing Guard
per minute](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5db649d2-6d44-47a2-bd7a-ad632e6969b8%2Ff64c4b12-b188-4310-8f02-aac088ed0932%2Fv9fpa6_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.
Ski Guard
Golf Guard
Fishing Guard
Selling price per unit
$ 270
Variable cost per unit
$ 155
$ 350
$ 210
$ 185
$ 65
Plastic injection molding machine processing time
required to produce one unit
Pounds of plastic pellets per unit
7 minutes
11 pounds
9 minutes
15 pounds
12 minutes
13 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 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 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
the constrained resource is earned by each product? (Round your final answers to 2 decimal places.)
Contribution margin per minute of the constrained resource
Ski Guard
per minute
Golf Guard
per minute
Fishing Guard
per minute
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education