Maurice Tutor

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Category > Accounting Posted 11 Aug 2017 My Price 9.00

Sport Luggage Inc.

Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company%u2019s most popular models appear below.

 

  Ski
Vault
  Golf
Caddy
  Fishing
Quiver
 
Selling price per unit $ 260   $ 350   $ 245  
Variable cost per unit $ 100   $ 150   $ 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

 

Required:
1a.

The total time available on the plastic injection molding machine is the constraint in the production process. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

  Ski Vault Golf Caddy Fishing Quiver
Contribution margin $ per minute $ per minute $ per minute

 

1b. Which product would be the most profitable use of this constraint?
   
 
  Ski Vault
  Fishing Quiver
  Golf Caddy

 

1c. Which product would be the least profitable use of this constraint?
   
 
  Ski Vault
  Fishing Quiver
  Golf Caddy

 

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 Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

  Ski Vault Golf Caddy Fishing Quiver
Contribution margin $ per pound $ per pound $ per pound

 

2b. Which product would be the most profitable use of this constraint?
   
 
  Golf Caddy
  Ski Vault
  Fishing Quiver

 

2c. Which product would be the least profitable use of this constraint?
   
 
  Golf Caddy
  Ski Vault
  Fishing Quiver

 

3. Which product has the largest unit contribution margin?
   
 
  Golf Caddy
  Fishing Quiver
  Ski Vault

 

Answers

(5)
Status NEW Posted 11 Aug 2017 05:08 PM My Price 9.00

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