Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of thecompany's most popular models appear below:Ski GuardGolf GuardSelling price per unit$ 310Variable cost per unit$ 150$ 330$ 130Fishing Gi$ 275$ 85Plastic injection molding machine processing timerequired to produce one unitPounds of plastic pellets per unit8 minutes7 pounds15 minutes9 pounds5 minu10 pounRequired:1. If the total time available on the plastic injection molding machine is the constraint, how much contribution margin perminute 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 hasbecome the total available pounds of plastic pellets, how much contribution margin per pound of the constrainedresource 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 1Required 2Required 3 Required 4Required 5If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of tproduct?Note: Round your final answers to 2 decimal places.

Contribution per unit, is the selling price per unit minus the variable cost per unit."Contribution"…

Answered: Required: 1. If the total time…

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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An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ RQ Selling price per unit $ 167.36 $ 303.39 $ 411.96 Variable cost per unit $ 136.00 $ 212.11 5 303.18 Minutes on the constraint 1.60 5.60 7.40 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places)
cercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] utdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the mpany'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 S Which product offers the most profitable use of the plastic pellets? Which product has the largest contribution margin per unit? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4 quired: f we assume that the total time available on the plastic injection molding machine is the constraint in the production ocess, how much contribution margin per minute of the constrained resource is earned by each product? Which product offers the most profitable use of the plastic injection molding machine? If we assume that a severe shortage of plastic pellets has required…
An operations manager is deciding on the level of automation for a new process. The fixed cost for automation includes the equipment purchase price, installation, and initial spare parts. The variable costs per unit for each level of automation are primarily labor related. Each unit can be sold for $81. As in many cases, you have the default alternative of doing nothing ($0 fixed cost, $0 variable costs). Hint: For these questions, also consider the “Do Nothing” option as a viable option when making your decision. Alternative Fixed Costs Variable Costs per Unit A $100,000 $54 B $272,000 $31 C $560,000 $20 Recommended: graph each alternative with units on the x-axis and $ on the y-axis. Also, include revenue on the chart. Identify the break-even points and points of indifference.
Sagar
The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs Applied fixed manufacturing overhead Variable selling and administrative costs Applied fixed selling and administrative costs $ 380 190 145 160 What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 205%?
A newly formed company must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe that there would be a loss in sales volume because customers tend to favour local suppliers. Revenue per unit will be $160 in either case. Annual fixed costs ($ millions) Variable cost per unit Expected annual demand (units) Near raw materials Near customers 1. Using the above given information, determine the profits for each alternative. (Negative answers should be indicated by a minus sign.) 64 2. Which location would produce greater profit? O Near raw materials O Near customers Near Raw Materials $0.90 $ 40 8,600 Near Customers $1.00 $ 45 13,300
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17. A company has a process that results in 21000 pounds of product A…

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