Problem 7-15 Par, Inc., is a small manufacturer of golf equipment and supplies. Par’s distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a hig

Problem 7-15

Par, Inc., is a small manufacturer of golf equipment and supplies. Par’s distributor believes a market exists for both a medium-priced golf bag, referred to as a standard model, and a high-priced golf bag, referred to as a deluxe model. 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:

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