Questions 52-56 are based on the following. What is the contribution margin for one siver pendant? Adoming Jewels, Inc., is a bcal jewelry store in a small United States tourist A) $20 town. The town is home to a major university with devoted football and basketball B) $22 fans. The business is considering relocating to one of two locations: on a side street C) $30 of the main shopping area or on the main shopping street. The rent for the side street D) $42 property is approximately half the rent on the man street. Most of the jewelry is designed by the owner, a certified gemologist with fifteen years of retail jewelry experience in this town, and the most popular inventories are silver and fourteenkarat (14K) gold pendants. The owner wears a gold pendant she made of the university mascot, which she copied from another piece of costume jewelry. Customers have requested she produce more pendants to add to her inventory. There is umused capacity of the current machinery, and up to 30 pendants could be produced in one year without impacting other products. The cost of materinls to produce the pendant in silver is \$8. To produce the pendant in gold would require $37 at the current price of 14K gold. A small dimond could be added for an additional $38. The time to produce one silver or gold pendant is 1 hour at a rate of $20 per hour, except for pendants with diamonds, which take 1.5 hours. The direct labor itself is performed by the The gold pendant of the university mascot can be considered which of the following types of good? owner. There are two part-time employees whose salaries are included in overhead A) Unsought good costs. Overhead costs, allocated on retail hours in a week, would be $14 per hour B) Shopping good C) Specialty good D) Convenience good for the side street location or $19 per hour for the main street bcation. Sales prices at either location for the pendant are as follows: Assume that the main street location is chosen and annual expected demand is for 20 silver pendants, 8 gold pendants, and 10 gold pendants with diamonds. Which achievable combination of sales will produce the highest profit? A) 12 silver, 8 gold, and 10 gold with dimonds B) 20 silver, 8 gold, and 2 gold with diamonds C) 20 silver, 0 gold, and 10 gold with diamonds D) 20 silver, 4 gold, and 6 gold with diamonds The owner of Adoming Jewels, Inc., wants to conduct a marketing research study: Her highest priority should be collecting information on A) customer shopping habits B) customer satisfaction C) the cost of rent for the new bcation D) the cost of utilities for the new location Questions 52-56 are based on the following. What is the contribution margin for one siver pendant? Adoming Jewels, Inc., is a bcal jewelry store in a small United States tourist A) $20 town. The town is home to a major university with devoted football and basketball B) $22 fans. The business is considering relocating to one of two locations: on a side street C) $30 of the main shopping area or on the main shopping street. The rent for the side street D) $42 property is approximately half the rent on the man street. Most of the jewelry is designed by the owner, a certified gemologist with fifteen years of retail jewelry experience in this town, and the most popular inventories are silver and fourteenkarat (14K) gold pendants. The owner wears a gold pendant she made of the university mascot, which she copied from another piece of costume jewelry. Customers have requested she produce more pendants to add to her inventory. There is umused capacity of the current machinery, and up to 30 pendants could be produced in one year without impacting other products. The cost of materinls to produce the pendant in silver is \$8. To produce the pendant in gold would require $37 at the current price of 14K gold. A small dimond could be added for an additional $38. The time to produce one silver or gold pendant is 1 hour at a rate of $20 per hour, except for pendants with diamonds, which take 1.5 hours. The direct labor itself is performed by the The gold pendant of the university mascot can be considered which of the following types of good? owner. There are two part-time employees whose salaries are included in overhead A) Unsought good costs. Overhead costs, allocated on retail hours in a week, would be $14 per hour B) Shopping good C) Specialty good D) Convenience good for the side street location or $19 per hour for the main street bcation. Sales prices at either location for the pendant are as follows: Assume that the main street location is chosen and annual expected demand is for 20 silver pendants, 8 gold pendants, and 10 gold pendants with diamonds. Which achievable combination of sales will produce the highest profit? A) 12 silver, 8 gold, and 10 gold with dimonds B) 20 silver, 8 gold, and 2 gold with diamonds C) 20 silver, 0 gold, and 10 gold with diamonds D) 20 silver, 4 gold, and 6 gold with diamonds The owner of Adoming Jewels, Inc., wants to conduct a marketing research study: Her highest priority should be collecting information on A) customer shopping habits B) customer satisfaction C) the cost of rent for the new bcation D) the cost of utilities for the new location
