Suppose Good-to-Go (Problem 4-22) 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 $37.50 to specialty toy stores. The amount of labor and the cost of raw materials for each possible new product are as follows:

Use a pricing out strategy to check if either model would be economically attractive to make.

COST CATEGORY MPACT KIDDO 1.20 0.75 0.50 0.20 $5.00 $4.50 Cutting and coloring (hr) 0.50 0.75 0.75 Quality and packaging (hr 0.20 Assembly (hr.) Finishing (hr.) Raw materials