Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models…

Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models…

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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
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
Ski
Guard
$310
$150
1-b. Which product would be the most profitable use of this constraint?
8 min.
7 kg
Golf
Guard
$330
$150
$
15 min
9 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?
Ski Guard
Fishing
Guard
$275
$ 85
minutes
0 per minute
5 min
0
10 kg
$
Golf Guard
minutes
0 per minute
0
$
Fishing Guard
minutes
0 per minute 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
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
Ski
Guard
$310
$150
1-b. Which product would be the most profitable use of this constraint?
8 min.
7 kg
Golf
Guard
$330
$150
$
15 min
9 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?
Ski Guard
Fishing
Guard
$275
$ 85
minutes
0 per minute
5 min
0
10 kg
$
Golf Guard
minutes
0 per minute
0
$
Fishing Guard
minutes
0 per minute 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
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
Ski
Guard
$310
$150
1-b. Which product would be the most profitable use of this constraint?
8 min.
7 kg
Golf
Guard
$330
$150
$
15 min
9 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?
Ski Guard
Fishing
Guard
$275
$ 85
minutes
0 per minute
5 min
0
10 kg
$
Golf Guard
minutes
0 per minute
0
$
Fishing Guard
minutes
0 per minute

Expert Answer:

Answer rating: 100% (QA)

To calculate the contribution margin per unit of the constrained resource plastic injection molding
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