FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 Selling price per unit $ 310 Variable cost per unit $ 150 $ 330 $ 130 Fishing Gi $ 275 $ 85 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 8 minutes 7 pounds 15 minutes 9 pounds 5 minu 10 poun 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.…arrow_forwardOutdoor Luggage, Incorporated, 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 Guard $ 260 $ 100 Required 1 Required 2 6 minutes 15 pounds Required 3 Required 4 Required 5 Complete this question by entering your answers in the tabs below. 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? Contribution margin per minute of the constrained resource 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…arrow_forwardHomework help. Chapter 25, number 5. Need help filling in the blanks. Thank you!arrow_forward
- Veritas is a startup that makes running t-shirts using high-tech fabric. The company has the following cost structure: Total cost = $50,000 + ($25 x number of t-shirts) The amount $50,000 is the: O Cost of Direct Material Cost of Good Sold O Fixed Cost O Overhead Rate O Total Variable Costarrow_forwardSagararrow_forwardRichardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $210 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered From To Price per Roll 1 75 $210 76 125 $185 126 225 $170 226 and up $145 The file RSR contains 172 orders that have arrived for the coming six weeks. (e) Use the VLOOKUP function with the preceding pricing table to determine the total revenue (in dollars) from these orders. $ (b) Use the COUNTIF function to determine the number of orders in each price bin. Quantity Ordered From To Price per Roll Number of Orders 3 75 $210 76 125 $185 126 225 $170 226 and up $145arrow_forward
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