Suppose Good$-$to$-$Go $($Problem $422)$ is considering the possible introduction of two new products to its line of suitcases: the Compact model $($for teenagers$)$ and the Kiddo model $($for children$).$ Market research suggests that Good$-$to$-$Go can sell the Compact model for no more than $$30,$ whereas the Kiddo model would go for as much as $$37\mathrm{.}50$ to specialty toy stores. The amount of labor and the cost of raw materials for each possible new product are as follows: Cost Category Compact Kiddo Cutting and coloring $($hr$.)0\mathrm{.}501\mathrm{.}20$ Assembly $($hr$.)0\mathrm{.}750\mathrm{.}75$ Finishing $($hr$.)0\mathrm{.}750\mathrm{.}50$ Quality and packaging $($hr$.)0\mathrm{.}200\mathrm{.}20$ Raw materials $$5\mathrm{.}00$ $$4\mathrm{.}50$ Use a pricing$-$out strategy to check if either model would be economically attractive to make.

Balakrishnan, Nagraj $($Raju$)$; Render, Barry; Stair, Ralph; Munson, Charles. Managerial Decision Modeling: Business Analytics with Spreadsheets, Fourth Edition $($p$.229).$ De Gruyter. Kindle Edition.