Questions 52.56 are trased on the followine. Adoning Jewek, Inc, is a local jesclry store in a smali United States fourist town. The town is boens to a major univerify with devoted foothall and takiketball fans. The besiness is eomidering relocating to one of two localions: on a side street of the main sbopping area or on the main shopping street. The rent for the sille strest property is approximately half the rent on the main useet. Most of the jewelry is designed by the enner, a cervified genselogis with fifecen years of retail jewelry experience in this town, and the mosh popalar invenoties are silver and fouteen-karat (14K) sold pendrots. piece of costume jewelry. Cuatoencrs have requested she produce move pendints 10 add to her inveabory. There is unused copacity of the cuerent machinery, and ap so 30 pendants could be probectin one year without impacting ober products. The cost of materials fo peoduce the peodant ie silver is 58 . To be aSded for an additional $38. The time to peoduce one silver or gold pendant is i hour at a rate of $20 per hous, eseept for perdants with diamonds, which take 1.5 bours. The direce labor incelf is performed by the owner. There afe two part-time cmployecs whose salaries are inchdod in overthead conte. Ovehead costs, allacalcd on fetail hours in a woek, would be $14 per hour for the sido strect location of $19 per boer for the mais serect location. Sales prices at either location for the pendant ate as follows: What is the contribution marpe fee one siver pendan? A) 520 B) 522 C) 530 D) 542 The gold pondant of the university mascot can be considersd which of ite following brea of good? A) Unsoupht pood ii) Stopping geod c) Specialry good D) Conveniente good Astane that the mais atrect losation it choocs and antual expocted dertand is for 20 Niver pindarti. pruduce the hisbest profit? A) 12 ilvot, 8 pold, and 10 gold with dianunds B) 20 alver, 8 pold, and 2 gold with dhansodi c) 20 aller, 0 pold, and 10 gold with dianonde. D) 20 siver, 4 relt, and 6 gold with dirmonds B) cunceser sulataction Quevilias 5256 are based ob the following. lome fo a frapor university with devoted foothell and basketbell fass: The busioess is ceasidering atrect The reat for the side strect property is approximately half the rent en the main strect. Most of the The owner weas a gold penitant she male of the university mascol, which she copied from anptber. pece of cosfarme jeweling. Customers have requested she peodsce mone pendants to ald to ber ieventory. Thete is unused capacity af the eurnent machinery, and ip to 30 pendants could be produced is one yeis whout impocting other geodscts. The cost of mascrials to produce the pendant in silver is 58 . To produce te pandint in pold would roquire 537 at the carrent prise of IAK pold. A imall charnosed could be adiled for an additional 53K. The time to peodace one silver of gold peralast is it bont at a nete of 520 by the ownet. Thete are ivo par-time cmployeet whose alaries are included in owenhead eovs. $19 par lour for the main sireet beation. Salos proces at either location for the pendant are as followo. The gold pendant of the universify masoot ican be considered which of the followine bycs of poodt A) Uhwoucht cood B) Sboping good c) Spccialty good D) Convenience pood Assume that the mait atret lecation is chosen and antral expected demand in for 20 silver pendants prefuce the highest profic? A) 12 vives, 8 gold, and 10gold with diamonats B) 20 silver, 8 cold, and 2 cold with diamonds C) 20 silver, 0 rolut, and 10 gold with diamonds D) 20 alker, 4 eod, and 6 indel with diamends A) cumonar ahoping katis 10) catoiner batiaftion C) the coat of acat for the new location D) the cont of vilitier for the new locasion Jewels can buy all of the following EXCIPT A) pelif exchange-traded funds B) sold in the rpot makket for fithee usap C) pold futares D) pold put options
