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1 year ago

Where will your transactions take place? Is the purchaser the user of your product/service?

1 answer:

8 0

The transactions take place in the clothing store at the payment counter of the store. The purchaser act as the user of the product bought from the store.

<h3>What is a transaction?</h3>

A transaction is an event where a person buys or sells the product for which he/she makes or gets the payment in return.

When an individual buys a product from a clothing store, then he/she goes to the payment counter for paying the bill. This shows a transaction at the where he/she got the product and the clothing store got the money for it. The individual who buys the clothing product act as a user of a product because he/she takes it for his/her personal use.

Therefore, after paying the bill for the product at the counter, the transaction initiates and the purchaser becomes the user of the product.

Learn more about a transaction in the related link:

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3 years ago

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3 years ago

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3 years ago

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1-a. The total time available on the plastic injection molding 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?

Answer:

We need to need to find the contribution margin for each product.

$Contribution Margin per unit = Selling Price per unit - Variable cost per unit$

Then we need to find contribution margin per unit of constrained resources with the following formula:

$Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}$

Constraint: Time available on plastic injection moulding machine

Ski Guard Golf guard Fishing guard

Selling Price per unit 200 300 255

Less: Variable Cost 60 140 55

Contribution Margin 140 160 200

Processing time per unit (minutes) 2 5 4

Contribution Margin unit of constraint 70 (140/2) 32 (160/5) 50

1-b. Which product would be the most profitable use of this constraint?

Manufacturing the Ski Guard would be the most profitable use of this constraint since it has the maximum contribution margin per unit of constraint, ($70 per unit).

1-c. Which product would be the least profitable use of this constraint?

The Golf Guard would be the least profitable use of this constraint since it has the least contribution margin per unit of constraint, at $32 per unit.

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 Guard, Golf Guard and Fishing Guard?

We need to need to find the contribution margin for each product.

$Contribution Margin per unit = Selling Price per unit - Variable cost per unit$

Then we need to find contribution margin per unit of constrained resources with the following formula:

$Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}$

Constraint: Pounds of plastic pellets

Ski Guard Golf guard Fishing guard

Selling Price per unit 200 300 255

Less: Variable Cost 60 140 55

Contribution Margin 140 160 200

Plastic pellets per unit (pounds) 7 4 8

Contribution Margin per pound 20 (140/7) 40 (160/4) 25 (200/8)

2-b. Which product would be the most profitable use of this constraint?

The Golf Guard would be the most profitable use of this constraint since it has the maximum contribution margin per unit of constraint, ($40 per unit).

2-c. Which product would be the least profitable use of this constraint?

The SkiGuard, with a contribution margin of $20 per pound of plastic would be the least profitable use of this constraint.

3. Which product has the largest unit contribution margin?

Answer : The fishing guard has the largest per unit contribution margin at $200.

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3 years ago