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.

a. If the company wants to maximize total profit contribution, how many bags of each model should it manufacture?

b. What profit contribution can Par earn on those production quantities?

c. How many hours of production time will be scheduled for each operation?

d. What is the slack time in each operation?

Product Standard Deluxe Cutting And Dyeing Sewing Finishing 7/10 1 1 5/6 2/3 Inspection Profit And Packaging 1/10 4 per bag $10 $9