Outdoor Luggage Inc makes highend hardsided luggage for spor

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 Variable cost per unit Plastic injection molding machine processing 270 $ 155 $ 350 $ 210 $ 185 65 7 minutes 9 minutes 12 minutes 11 pounds 15 pounds 13 pounds time required to produce one unit Pounds of plastic pellets per unit 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 Required1Required 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 of the constrained resource is earned by each product? (Round your final answers to 2 decimal places.) Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute

Solution

Calculate contribution margin per minute of the constrained resource

Calculate contribution margin per pound of the constrained resource

	Ski guard	Golf guard	Fishing guard
Selling price per unit	270	350	185
Variable cost per unit	155	210	65
Contribution margin per unit	115	140	120
Minute per unit	7	9	12
Contribution margin per minute of the constrained resources	16.43	15.56	10