Required: 1. If the total time available on the plastic injection molding machine is the constraint, 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 a severe shortage of plastic pellets required the company to cut back 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?
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- 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 $ 250 $ 250 $ 255 Variable cost per unit $ 160 $ 140 $ 155 Plastic injection molding machine processingtime required to produce one unit 13 minutes 6 minutes 5 minutes Pounds of plastic pellets per unit 7 pounds 10 pounds 6 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 $ 260 $ 270 $ 305 Variable cost per unit $ 130 $ 130 $ 180 Plastic injection molding machine processing time required to produce one unit 4 minutes 6 minutes 9 minutes Pounds of plastic pellets per unit 9 pounds 16 pounds 7 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…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, 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?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?Snow, Inc. makes three kinds of snowboards, but it has limited number of machine hours available to make them. Product line data are as follows: Wood Plastic Graphite Machine hours per unit 1.25 1.0 1.5 Selling price per unit P100 P120 P200 Variable mfg. cost per unit 45 50 100 Variable selling cost per unit 15 26 36 In what order should the snowboard product lines be produced? Wood, Plastic, then Graphite Plastic, Graphite, then Wood Graphite, Wood, then Plastic none of the above Group of answer choices 1 2 3 4
- 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…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.…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.
- Oriole World manufactures a workout product, CardioBands, that helps users raise their heartbeats without exerting too much effort. The per-unit costs to manufacture and sell this rubber-band-based product are as follows. DM $1.10 DL 0.75 Variable-MOH 0.30 Fixed-MOH 1.65 Variable SG&A 0.25 Fixed SG&A 0.95 Total $5.00 Oriole World normally sells its CardioBands for $11 each. Jerry’s Gym wants to purchase 50 of these workout products to incorporate in two of its cardio classes, but it wants a special price of $180 for the complete order. Oriole World has enough production capacity to take on this special order. Should Oriole World accept this special order, assuming all relevant costs will be incurred for the order?select an option Correct answerHow much profit or loss would this deal generate for Oriole World? (Round answer to 2 decimal places, e.g.…Avenger Toy Shop produces and sells children’s toys such as puzzles and tents which help the development of young minds. The shop plan to produce and sell a new toy, Knitted Baby Rattle for their new target customers. The estimated production costs are as follows: Two types of materials are required to produce a new toy, Direct and Indirect Materials. Costs of Direct Materials is RM3 per meter while Indirect Materials cost RM4 per meter. Each unit toy uses two (2) meters of Direct Materials and four (4) meters of Indirect Materials. The Labour cost per unit is RM12. Overhead costs are RM10 per unit. Based on a market survey, competitors sell this product at a selling price of RM50. The new toy’s target return on sales is 20%. Determine the target cost per unit of the toy. Calculate the cost gap per unit of the toy.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…