Question
In: Accounting
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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 | $ | 260 | $ | 330 | $ | 205 | ||||||
| Variable cost per unit | $ | 120 | $ | 180 | $ | 135 | ||||||
| Plastic injection molding machine processing time required to produce one unit |
9 minutes | 12 minutes | 11 minutes | |||||||||
| Pounds of plastic pellets per unit | 12 pounds | 15 pounds | 11 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?
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?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
240
$
330
$
285
Variable cost per unit
$
120
$
180
$
130
Plastic injection molding machine processing
time required to produce one unit
11 minutes
8 minutes
15 minutes
Pounds of plastic pellets per unit
9 pounds
6 pounds
15 pounds
Required:
1. If we...
Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
Ski Guard $260
Golf Guard $350
Fishing Guard $245
Variable cost per unit
Ski Guard $100
Golf Guard $150
Fishing Guard $105
Plastic injection molding machine processing time required to
produce one unit 6 minutes 12 minutes 11 minutes
Pounds of plastic pellets per unit 15 pounds 15 pounds 12
pounds
1a. The total time...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
300
$
380
$
225
Variable cost per unit
$
160
$
170
$
75
Plastic injection molding
machine processing
time required to produce one unit
7 minutes
6 minutes
4 minutes
Pounds of plastic pellets per
unit
11 pounds
13 pounds
6 pounds
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
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
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
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
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
270
$
350
$
185
Variable cost per unit
$
155
$
210
$
65
Plastic injection molding machine processing
time required to produce one unit
7 minutes
9 minutes
12 minutes
Pounds of plastic pellets per unit
11 pounds
15 pounds
13 pounds
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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 $ 310 $ 330 $ 275 Variable cost per unit $
150 $ 130 $ 85 Plastic injection molding machine processing time
required to produce one unit 8 minutes 15 minutes 5 minutes Pounds
of plastic pellets per unit 7 pounds 9 pounds 10 pounds Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
250
$
320
$
350
Variable cost per unit
$
110
$
210
$
155
Plastic injection molding machine processing
time required to produce one unit
14 minutes
13 minutes
20 minutes
Pounds of plastic pellets per unit
9 pounds
10 pounds
14 pounds
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
230
$
320
$
275
Variable cost per unit
$
80
$
160
$
140
Plastic injection molding machine processing
time required to produce one unit
12 minutes
8 minutes
5 minutes
Pounds of plastic pellets per unit
14 pounds
15 pounds
13 pounds
Required:
1. If we...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s...
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
$
290
$
190
$
215
Variable cost per unit
$
185
$
90
$
90
Plastic injection molding machine processing
time required to produce one unit
12 minutes
6 minutes
8 minutes
Pounds of plastic pellets per unit
10 pounds
13 pounds
9 pounds
Required:
1. If we...
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