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Davis runs a pottery shop that sells custom vases and mug sets. Both are hand painted by a local artist. The vases have a unit
Davis runs a pottery shop that sells custom vases and mug sets. Both are hand painted by a local artist. The vases have a unit contribution margin of $150 and the mug sets have a unit contribution margin of $80. It takes the local artist 1.5 hours to paint each vase and 1 hour to paint each mug set, and the artist is only willing to work 30 hours per week. What should Davis do, and why? He should ask the artist to focus on painting the vases because they have a higher contribution margin per labor hour. He should ask the artist to focus on painting the mugs because it costs less for her to paint them and he makes more money from the sales. He should ask the artist to focus on painting the mugs because the artist can paint more mugs than vases per week. He should ask the artist to focus on painting the vases because they have a higher unit contribution margin
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