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

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)