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 Golf Fishing
Guard Guard Guard
Selling price per unit $200 $300 $255
Variable cost per unit $60 $140 $55
Plastic injection molding
machine processing time
required to produce one unit 2 minutes 5 minutes 4 minutes
Pounds of plastic pellets
per unit 7 pounds 4 pounds 8 pounds
Required:
1A. 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?
1B. Which product would be the most profitable use of this constraint?
A. Ski Guard
B. Golf Guard
C. Fishing Guard
1C. Which product would be the least profitable use of this constraint?
A. Ski Guard
B. Golf Guard
C. Fishing Guard
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?
2B. Which product would be the most profitable use of this constraint?
A. Ski Guard
B. Golf Guard
C. Fishing Guard
2C. Which product would be the least profitable use of this constraint?
A. Ski Guard
B. Golf Guard
C. Fishing Guard
3. Which product has the largest unit contribution margin?
A. Ski Guard
B. Golf Guard
C. Fishing Guard

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

Which motion below could be made so that the chair would be called on to enforce a violated rule?

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.