Estimate the profit contribution per bag

Reference no: EM13129061

Par, Inc., is a small manufacturer of golf equipment and supplies. Par's distributor believes a market exists for both a medium-priced golf bad, referred to as a stander 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 3 months. A careful analysis of the manufacturing requirements resulted in the following table, which shows the production time requirements for the 4 required manufacturing operations and the accounting department's estimate of the profit contribution per bag?

Reference no: EM13129061

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