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RELEVANT COSTING - PRODUCT MIX Miriam has just attained her diploma in interior decorating and she wants to offer her services in her neighbourhood. She

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RELEVANT COSTING - PRODUCT MIX Miriam has just attained her diploma in interior decorating and she wants to offer her services in her neighbourhood. She has 40 hours a week to dedicate to this new business, but she needs to decide on her target clientele. She has to choose among three markets: apartment decorating, house decorating, or small company decorating. After a study of her potential market, she estimates that she will be able to charge about $800 for decorating an apartment $1,400 for a house, and $1,800 for a small company. She estimates that the costs incurred will be $450 for decorating an apartment, $690 for a house, and $1,430 for a small company. Decorating an apartment or a small business will take approximately 4 hours each, and decorating an entire house will take approximately 8 hours. x * 7 : Determine which type of market Miriam should choose to target. 1 Requirement 2: Calculate Miriam's weekly profit according to her cost estimations, Requirement 3: Miriam has the opportunity to hire a classmate who specialized in interior decorating of houses. If she works with him, the costs to decorate a house will increase by $150, but it will then take 6 hours instead of 8 hours. If she wants to maximize her profits, should she choose this solution? Explain your decision

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