Ski guard | Gofl guard | Fishing guard | |
Selling price per unit | 250 | 370 | 235 |
(-) Variable cost per unit | 170 | 285 | 145 |
Contribution margin per unit | 80 | 85 | 90 |
Required 1 : | ||||||
Here, Total time available on plastic injection molding is the constraint : | ||||||
Ski guard | Golf guard | Fishing guard | ||||
Contribution margin per unit | 80 | 85 | 90 | |||
(/) Plastic injection molding machine processing time required to produce one unit ( Minutes ) | 10 | 11 | 15 | |||
Contribution margin per minute of the contrained resource | 8.00 | per minute | 7.73 | per minute | 6.00 | per minute |
Required 2 : |
Answer = Ski guard |
As the Contribution margin per minute of the constrained resource for Ski guard is greater than that of the other products, it offers the most profitable use of the plastic injection molding machine |
Required 3 : | ||||||
Here, pounds of plastic pellets is the constraint : | ||||||
Ski guard | Golf guard | Fishing guard | ||||
Contribution margin per unit | 80 | 85 | 90 | |||
(/) Pounds of plastic pellets per unit | 11 | 6 | 13 | |||
Contribution margin per pound of the constrained resource | 7.27 | per pound | 14.17 | per pound | 6.92 | per pound |
Required 4 : |
Answer : Gold guard |
As the Contribution margin per pound of the constrained resource for Golf guard is greater than that of the other products, it offers the most profitable use of the plastic pellets |
Required 5 : |
Answer : Fishing guard |
Exercise 12-5 Volume Trade-Off Decisions (LO12-5) Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment....
Exercise 12-5 Volume Trade-Off Decisions [LO12-5) 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 300 138 Golf Guard 3e $ 150 $ Fishing Guard 255 $ $ 75 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 5 pounds 8 minutes 6 pounds 15 minutes 15 pounds...
Exercise 12-5 Volume Trade-Off Decisions (LO12-5] 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 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Guard $ 230 $ $ 80 $ 12 minutes 14 pounds Golf Guard 320 $ 160 $ 8 minutes 15 pounds Fishing Guard 275 140 5 minutes...
Exercise 12-5 Volume Trade-Off Decisions [LO12-5] 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 $ 220 $ 330 $ 200 Variable cost per unit $ 140 $ 260 $ 115 Plastic injection molding machine processing time required to produce one unit 4 minutes 12 minutes 9 minutes Pounds of plastic pellets per unit 12 pounds 15 pounds...
Exercise 12-5 Volume Trade-Off Decisions (LO12-5) 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 molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Fishing Guard Guard Guard 210 $ 310 $ 265 70 $ 150 $ 130 8 minutes 10 minutes 10 minutes 7 pounds 16 pounds 6 pounds...
Exercise 12-5 Volume Trade-Off Decisions (L012-5) 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 molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Fishing Guard Guard Guard 270 $ 250 $ 185 160 $ 170 $ 85 5 minutes 6 minutes 2 minutes 9 pounds 9 pounds 7 pounds...
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 $ 340 $ 265 Variable cost per unit $ 80 $ 140 $ 115 Plastic injection molding machine processing time required to produce one unit 5 minutes 6 minutes 3 minutes Pounds of plastic pellets per unit 6 pounds 15 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 most popular models appear below. points Skipped Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Guard Guard 320 $ 320 $ 119 $ 139 $ 13 minutes 10 minutes 12 pounds 7 pounds Fishing Guard 275 95 2 minutes 14 pounds eBook Required: 1. If...
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 290 $ 185 $ Golf Guard 190 $ 90 $ Fishing Guard 215 90 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 12 minutes 10 pounds 6 minutes 13 pounds 8 minutes 9 pounds Required: 1. If we assume that...
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 molding machine processing time required to produce one unit Pounds of plastic pellets per unit Ski Golf Fishing Guard Guard Guard 260 $ 270 $ 305 130 $ 130 $ 180 4 minutes 6 minutes 9 minutes 9 pounds 16 pounds 7 pounds Required: 1. If we assume that...
Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Golf Guard 380 5 170 Fishing Guard 225 $ S Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit Guard 380 160 7 minutes 11 pounds 6 minutes 13 pounds 4 minutes 6 pounds Required: 1. If we assume that the total time...