Challenger Yachts, located in New York, manufactured sailing yachts of all descriptions. The company had begun by building custom-designed yachts for a largely New York-based clientele. Custom-designed yachts still accounted for three-fifths of Challenger's unit sales and four-fifths of its dollar sales and earnings. Over the years, as Challenger Yachts' reputation for quality design and workmanship spread, sales broadened to cover the entire eastern seaboard. In an effort to capitalize on this increased recognition and to secure a piece of the fastest growing market in sailing, Challenger Yachts began manufacturing a new standard, fixed-design craft. Challenger attacked only the high end of this market, as the boat measured 40 feet long. Nevertheless, even this end of the market was more price-sensitive and less conscious of performance than Challenger Yacht's custom-design customers were. All of the company's yachts were manufactured at the New York plant and shared the same equipment and skilled labour force. Custom designs were given priority in scheduling, and the new boat was rotated into the schedule only when demand slackened. As sales of the fixed-design boat increased, however, scheduling the new boat on a regular basis became necessary. Challenger Yachts' boats were built basically from the bottom