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 | $ | 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 | |||||||||
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?
Thank you
If any doubt please comment
Exercise 12-5 Volume Trade-Off Decisions [LO12-5] Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports eq...
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 [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. 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 Golf Fishing Guard Guard Guard 259 $ 378 $ 235 170 $ 285 $ 10 minutes 11 minutes 15 minutes 11 pounds 6 pounds 13 pounds 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 145...
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...
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 $200 $300 $255 Variable cost per unit $60 $140 $55 Plastic injection molding machine processing time required to produce one unit 2 minutes 5 minutes 4 minutes Pounds of plastic pellets per unit 7 pounds 4 pounds 8 pounds Required: 1-a. The total time available on the plastic...
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 240 $ 100 $ Golf Guard 370 $ 255 $ Fishing Guard 225 105 " " 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 minutes 7 minutes 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 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 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...