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10 M7-12 (Static) Prioritizing Products with Constrained Resource (LO 7-2, 7-7) 5 points Anne Sugar makes large ceramic pots for use in outdoor landscaping. She
10 M7-12 (Static) Prioritizing Products with Constrained Resource (LO 7-2, 7-7) 5 points Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Sales price Variable cost Firing time Square $70 $15 2.5 hours Round $90 $20 3.5 hours eBook Suppose that Anne has developed a rectangular, medium-size ceramic pot. It requires four hours of kiln time; however, two medium- size pots can fit in the kiln at once. The medium-size pots would sell for $60 each and have variable cost of $10 per pot. Print If Anne has only 40 hours of firing time available per week, what is the maximum amount of contribution margin she can earn per week? References Maximum Contribution Margin 4 M7-9 (Algo) Analyzing Sell-or-Process Further Decisions (LO 7-6] 5 points More Parts Liquidators specializes in buying excess parts inventories for resale or to incorporate into other products. They recently purchased parts for $190,000 and they have a buyer willing to pay $228,000. The company can also incorporate these parts into a new product at a cost of $142,500 and sell the new product for $361,000. What should More Parts Liquidators do? X Answer is not complete. Parts Only Incremental New Product w/Parts $ 361,000 Sales Revenue $ 228,000 190,000 Cost of Parts Additional Costs 190,000 142,500 28,500 Profit / loss $ 38,000 $ More Parts should sell the parts
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