Prior to regulatory issues, the plant was producing quality leather toolbelts and work-vests six days a week (about seventy-five of each daily). On average, the belts sold for $20 a piece, while the vests retailed for $25.

The business has been shut down for the past two months, but expenses used to be as follows:

Average cost of leather per toolbelt: $3

Average cost of leather per vest: $4

Average daily salary of assembly line workers (typically 6 employed each workday): $200

Average daily salary of sales and administrative staff (typically 3 employed each workday): $150

Additionally, minor supplies total $3,000 per month, maintenance and repair expenses total $4,500 a month, utility costs are $1,000 a month, marketing expenses total $3,500 a month, and executive salaries total $16,000 a month. The income tax rate is 15%.

Marla estimates that each product takes an equal time to make, even though the vests contain more leather. From looking at sales data, she has determined that demand for the vests is highest during the spring and fall seasons, while the tool belts tend to be sold evenly through the year. Overall, the annual demand for the products is roughly the same, which matches production. Marla is wondering if the current level-production model is efficient or if there might be a better way to produce the goods.