Estimate of the profit contribution for the deluxe bag

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Reference no: EM13992367

Refer to the Par, Inc., problem described in Section 2.1. Suppose that Pars management encounters the following situations: a. The accounting department revises its estimate of the profit contribution for the deluxe bag to $18 per bag. b. A new low-cost material is available for the standard bag, and the profit contribution per standard bag can be increased to $20 per bag. (Assume that the profit contribution of the deluxe bag is the original $9 value.) c. New sewing equipment is available that would increase the sewing operation capacity to 750 hours. (Assume that 10A?? 9B is the appropriate objective function.) If each of these situations is encountered separately, what is the optimal solution and the total profit contribution?

Reference no: EM13992367

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