Problem 7-15 Par, Inc., is a small manufacturer of golf equipment and supplies. Par’s distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a hig
Problem 7-15 Par, Inc., is a small manufacturer of golf equipment and supplies. Par’s distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. The distributor is so confident of the market that, if Par can make the bags at a competitive price, the distributor will purchase all the bags that Par can manufacture over the next three months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the four required manufacturing operations and the accounting department’s estimate of the profit contribution per bag: The director of manufacturing estimates that 630 hours of cutting and dyeing time, 600 hours of sewing time, 708 hours of finishing time, and 135 hours of inspection and packaging time will be available for the production of golf bags during the next three months. Select the correct graph that shows the optimal solution if Par’s management encounters the following independent situations: The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. Graph 1 Graph 2 Graph 3 Graph 4 B) A new low-cost material is available for the standard bag, and the profit contribution per standard bag can be increased to $20 per bag. (Assume that the profit contribution of the deluxe bag is the original $9 value.) Graph 1 Graph 2 Graph 3 Graph 4 C) New sewing equipment is available that would increase the sewing operation capacity to 750 hours. (Assume that 10A + 9B is the appropriate objective function.) Graph 1 Graph 2 Graph 3 Graph 4