Golf Bag Production Profit Analysis
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ScribdTranslationsGolf Bag Production Profit Analysis
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ScribdTranslations2. Par, Inc. is a small manufacturer of golf equipment and material.
Par's distributor
Do you think there is a market for a moderately priced golf bag called
standard model, like for a high-priced golf bag, called luxury model. The
the distributor has so much confidence in the market that if Par can manufacture the bags at a
competitive price, will buy all the bags that Par manufactures during the three months
following. A detailed analysis of the manufacturing requirements resulted in
the following table, which shows the production time requirements for the
four required manufacturing operations and the estimate made by the department of
accounting for the contribution to profits by fund:
The manufacturing director estimates that there will be 630 hours available for cutting and dyeing, 600
sewing hours, 708 hours of finishing and 135 hours of inspection and packaging for the
production of golf bags over the next three months.
Max. 10S + 9D
S.a.
0.75S + 1D ≤ 630
0.5 S + 0.83D ≤ 600
1 S + 0.66D ≤ 708
0.1S + 0,25D≤ 135
S, D ≥ 0
a. If the company wants to maximize the total contribution to profits, how many
How many bags of each model should be manufactured?
The company must manufacture 543 standard bags and 250 luxury bags with the
which will have a profit of $7679.55.
b. What contribution to profits can Par obtain with these amounts of
production?
c. How many hours of production time will be scheduled for each operation?