How is a bond like a loan

Outdoor luggage inc. makes high-end hard-sided luggage for sports equipment. data concerning three of the company's most popular

Elden [556K]

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.

6 0

3 years ago

A man aged 40 wishes to accumulate a fund for retirement by depositing $1,000 at the beginning of each year for 25 years. Strati

Firdavs [7]

Answer:

The man will made 15 drawins for 31,468 at their retirement age.

Explanation:

We solve for the future value of the annuity-due (deposits at the beginning)

$C \times \frac{(1+r)^{time} -1}{rate}(1+r) = FV\\$

C 1,000.00

time 25

rate 0.04

$1000 \times \frac{(1+0.04)^{-25} -1}{0.04}(1+0.04) = PV\\$

FV $375.1168

Now, we calcualte the amount of the withdrawals considering the new rate:

$PV \div \frac{1-(1+r)^{-time} }{rate}(1+r) = C\\$

$375.116802253964 \div \frac{1-(1+0.035)^{-15} }{0.035}(1+0.035) = C\\$

C $ 31.468

7 0

3 years ago

Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 865 2 1,040 3 1,290 4 1,385

andrezito [222]

Answer:

Total FV= $5,080.86

Explanation:

Giving the following information:

Cash Flow:

Cf1= $865

Cf2= $1,040

Cf3= $1,290

Cf4= $1,385

Discount rate (i)= 8%

To calculate the total future value, we need to apply the following formula to each cash flow:

FV= Cf*(1+i)^n

Cf1= 865*1.08^3= 1,089.65

Cf2= 1,040*1.08^2= 1,213.01

Cf3= 1,290*1.08= 1,393.2

Cf4= 1,385

Total FV= $5,080.86

5 0

3 years ago

Is Flour a Natural resources

Blababa [14]

The correct answer is no.

Natural Resources are things that occur in nature that can be used for economic gain. Since flour is a processed product and does not occur in nature it is not a natural resource.

8 0

3 years ago

Read 2 more answers

g A decrease in Inventory is reported as: Group of answer choices Operating Activities, Positive cash flow adjustment to net inc

Nonamiya [84]

Answer:

Positive cash flow adjustment to net income Operating Activities

Explanation:

A decrease in inventory presents a saving on the Company side in Cash Flow terms in ordinary course of business (operations). Therefore, the correct option is : A decrease in Inventory is reported as a Positive cash flow adjustment to net income Operating Activities.

3 0

2 years ago