HarborTech Industries is a leading manufacturer of high$-$quality components for watercraft. The company has been focusing on producing HydroPart $550$ and HydroPart $820.$ HydroPart $550$ is the more popular of the two, historically being the sole product of the company. Introduced four years ago, HydroPart $820$ is a complex product requiring specialized tooling and setups. Initially, the addition of HydroPart $820$ led to increased profits. Still, in the past two years, competition, particularly from international manufacturers, has led to a decline in HydroPart $550$ sales, resulting in a marginal loss in the most recent fiscal period.

A critical discussion between Maria Wirtz, the plant manager, and Floyd Omernik, the divisional marketing manager, highlights their concerns about the plant's future and its product line.