Gulmarg and Kitz competed in high-performance skis and sold direct to end consumers. The companies prided themselves on outstanding craftsmanship, using only the best materials. Both were known for the high quality of their skis and the fact that customers could design their own top sheet. Although each company had a loyal following, there was a significant fraction of customers who were happy to buy skis from either. It is this group that the two companies were competing for through price discounts. The sale of skis was highly seasonal, with all sales occurring between October and March, as shown in Table 9-9. Production capacity at the manufacturing plant was limited by the number of employees that Gulmarg hired. Employees were paid $15/hour for regular time and $23/hour for overtime. Each pair of skis required 4 hours of work from an employee. The plant worked 20 days a month, 8 hours a day on regular time. Overtime was restricted to a maximum of 40 hours per employee per month. Gulmarg employed a total of 60 workers and felt that it could not let any of them go, even in months when demand was below the capacity provided by 60