Business, 09.12.2019 20:31 Ltksls4177

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 guard golf guard fishing guard
selling price per unit $ 320 $ 320 $ 275
variable cost per unit $ 110 $ 130 $ 95
plastic injection molding machine processing time required to produce one unit 13 minutes 10 minutes 2 minutes
pounds of plastic pellets per unit 12 pounds 7 pounds 14 pounds
required:
1a. the total time available on the plastic injection molding 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?
1b. which product would be the most profitable use of this constraint?
a) fishing guard
b) ski guard
c) golf guard
1c. which product would be the least profitable use of this constraint?
a) fishing guard
b) ski guard
c) golf guard

Answers: 3

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