4 Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's mostpopular models appear below.SkiGuard%24GolfGuard350 $150 $FishingGuard245105Selling price per unitVariable cost per unitPlastic injection molding machine processingtime required to produce one unitPounds of plastic pellets per unit260 $100 $%2$6 minutes 12 minutes 11 minutes15 pounds20 pounds12 poundsRequired:1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, howmuch 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 newconstraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrainedresource 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.Required 1Required 2Required 3Required 4Required 5If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its newconstraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrainedresource is earned by each product? (Round your final answers to 2 decimal places.)Ski GuardGolf GuardFishing GuardContribution margin per pound of the constrainedresourceper poundper poundper pound< Required 2Required 4 > Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's mostpopular models appear below.SkiGuard260 $100 $GolfGuard350 $150 $FishingGuard245105Selling price per unitVariable cost per unitPlastic injection molding machine processingtime required to produce one unitPounds of plastic pellets per unit246 minutes 12 minutes 11 minutes15 pounds20 pounds12 poundsRequired:1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, howmuch 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 newconstraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrainedresource 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.Required 1Required 2Required 3Required 4Required 5If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, howmuch contribution margin per minute of the constrained resource is earned by each product? (Round your final answers to 2decimal places.)Ski GuardGolf GuardFishing GuardContribution margin per minute of the constrainedresourceperminuteperminuteper minute< Required 1Required 2<>

Contribution margin per unit refers to the amount of revenue that a company's product generates…

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 24 24 Golf Guard 350 $ 150 $ Fishing Guard 245 105 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 260 $ 100 $ 6 minutes 12 minutes 11 minutes 15 pounds 20 pounds 12 pounds 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?

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 24 24 Golf Guard 350 $ 150 $ Fishing Guard 245 105 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 260 $ 100 $ 6 minutes 12 minutes 11 minutes 15 pounds 20 pounds 12 pounds 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Outdoor Luggage, Incorporated, 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 $ 320 $ 320 $ 275 Variable cost per unit $ 110 $ 130 $ 95 Plastic injection molding machine processing time required to produce one unit 13 minutes 10 minutes 2 minutes Pounds of plastic pellets per unit 12 pounds 7 pounds 14 pounds 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…
Outdoor Luggage, Incorporated, 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 $ 230 $ 330 $ 265 Variable cost per unit $ 90 $ 150 $ 105 Plastic injection molding machine processing time required to produce one unit 4 minutes 10 minutes 5 minutes Pounds of plastic pellets per unit 5 pounds 11 pounds 12 pounds 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…
Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below. SkiGuard GolfGuard FishingGuard Selling price per unit $ 280 $ 330 $ 175 Variable cost per unit $ 140 $ 210 $ 115 Plastic injection moulding machineprocessing time required per unit 4 min 12 min 9 min Kgs of plastic pellets per unit 12 kg 15 kg 13 kg 1-a. The total time available on the plastic injection moulding 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? 1-b. Which product would be the most profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 1-c. Which product would be the least profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 2-a. A severe shortage of plastic pellets has required the company to cut…
Outdoor Luggage, Incorporated, 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 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? 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?
Outdoor Luggage, Incorporated, 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 $ 230 $ 330 $ 265 Variable cost per unit $ 90 $ 150 $ 105 Plastic injection molding machine processing time required to produce one unit 4 minutes 10 minutes 5 minutes Pounds of plastic pellets per unit 5 pounds 11 pounds 12 pounds Required: 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit?
Glassworks makes products for the sandblasting industry. One of the products they make is bags of high-grade sandblasting media that is made from a combination of quartz-sand and recycled ground-glass (cullet). Standard costs and quantities to produce one bag of sandblasting media are as follows: Quantity Cost Quartz-sand 20 kg $4.00 Cullet 5 kg $3.00 80,000 bags of sandblasting media were produced. Actual purchases and inventories were: Beginning Ending Purchases Purchases Inventory Inventory (in kg) ( in $) Quartz-sand 0 kg 0 kg 1,610,000 kg $322,161 Cullet 0 kg 120,000 kg 550,000 kg $286,000 Required: Calculate the following variances: a)Total direct material efficiency variance. b)Total direct material mix variance.…
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Coram Audio makes wireless headphones. Each pair of headphones comes with a travel case. Since its founding, Coram has manufactured its own travel cases. Recently, Holmur Travel Gear (HTG), a local outfitter that manufactures and sells backpacks, tent cases, and so on, contacted Coram and proposed that they produce the headphone travel cases. Based on management experience, Coram's cost per travel case is as follows (based on annual production of 41,800 units). Direct materials $ 10.00 Direct labor 21.20 Variable overhead 6.40 Fixed overhead 4.70 Total $ 42.30 HTG has offered to sell the case to Coram for $39 each. The total order would amount to 41,800 travel cases per year. Coram's management decides that they will make the switch to HTG cases if Coram can save at least $12,900 per year. Accepting the offer would eliminate annual fixed overhead of $79,420. Required: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the…
Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster could use all of its available machine hours producing either model. The two models are processed through the same production department. A B C 1 Per Unit 2 Deluxe Regular 3 Sale price $1,020 $580 4 Less expenses: 5 Direct materials 280 100 6 Direct labor 92 184 7 Variable manufacturing overhead 246 82 8 Fixed manufacturing overhead* 114 38 9 Variable operating expenses 119 61 10 Total expenses $851 $465 11 Operating income $169 $115 *Allocated on the basis of machine hours What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis.
Mattress Comfort Corporation manufactures two types of mattresses, Dreamer and Sleeper. Dreamer has a complex design that uses gel-filled compartments to provide support. Sleeper is simpler to manufacture and uses conventional padding. Last year, Mattress Comfort had the following revenues and costs: Dreamer Sleeper Total Revenue $1,200,000 $900,000 $2,100,000 Direct Materials 500,000 450,000 950,000 Direct Labor 250,000 200,000 450,000 Indirect Costs: Administration 80,000 Production Setup 100,000 Quality Control 120,000…
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