23 Jul WHICH PRODUCT WOULD BE THE LEAST PROFITABLE USE OF THIS CONSTRAINT?
poundsOutdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning thr Show more Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below. Ski Guard Ski Guard Ski Guard Golf Guard Golf Guard Golf Guard Fishing Guard Fishing 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 7 pounds 11 pounds Required: 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? Ski Guard Fishing Guard Golf Guard 1c. Which product would be the least profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 2a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard Golf Guard and Fishing Guard? 2b. Which product would be the most profitable use of this constraint? Golf Guard Fishing Guard Ski Guard 2c. Which product would be the least profitable use of this constraint? Golf Guard Fishing Guard Ski Guard 3. Which product has the largest unit contribution margin? Golf Guard Fishing Guard Ski Guard Garrison 15e Recheck 2014-12-31 Show less
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