Question :
51. Carolina Potato Inc. currently sells cut sweet potatoes for $.85 : 1291726
51. Carolina Potato Inc. currently sells cut sweet potatoes for $.85 per can. The cost of producing the sweet potatoes is $.18 per can. Carolina Potato is considering starting a line of mashed sweet potatoes. The additional processing costs would be $.06 per can and each can would sell for $.95. Which of the following pieces of information is not relevant to the decision to sell or process further? A. $.06 additional processing costB. $.18 production costC. $.95 sales priceD. demand for pureed sweet potatoes
52. Hannah’s Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags of either type of cookie per year, which of the following statements is true if she chooses to process the cookies further? A. Net income would increase by $2,250 per year.B. Net income would decrease by $2,500 per year.C. Net income would decrease by $250 per year.D. Net income would increase by $15,250 per year.
53. Wright ManufacturingWright Manufacturing makes picnic tables in three sizes: small, medium, and large. The picnic tables can be sold with or without a finishing stain. The following information is available for each table:
Small
Medium
Large
Initial sales price
$60
$100
$175
Initial cost
20
40
55
Sales price after staining
70
125
210
Cost of staining
11
15
20
Number sold per month
100
300
175
Refer to the Wright Manufacturing information above. Which table(s) should be processed further? A. Small and medium tablesB. Medium and large tablesC. Large tablesD. Small, medium, and large tables
54. Wright ManufacturingWright Manufacturing makes picnic tables in three sizes: small, medium, and large. The picnic tables can be sold with or without a finishing stain. The following information is available for each table:
Small
Medium
Large
Initial sales price
$60
$100
$175
Initial cost
20
40
55
Sales price after staining
70
125
210
Cost of staining
11
15
20
Number sold per month
100
300
175
Refer to the Wright Manufacturing information above. What is the maximum amount of increase in net income from further processing? A. $81,125B. $ 5,525C. $82,125D. $ 5,625
55. Joyner ProductsJoyner Products makes cedar garden benches in three sizes: small, medium, and large. Joyner sells the benches to local retailers. The benches can be sold with or without assembly. The following information is available for each table:
Small
Medium
Large
Initial sales price
$ 80
$120
$225
Initial cost
30
50
95
Sales price after assembly
120
160
245
Cost of assembly
20
25
40
Number sold per month
200
175
150
Refer to the Joyner Products information above. Which bench(es) should be assembled before they are sold to retailers? A. Small and mediumB. Medium and largeC. Small and largeD. Small, medium, and large
56. Joyner ProductsJoyner Products makes cedar garden benches in three sizes: small, medium, and large. Joyner sells the benches to local retailers. The benches can be sold with or without assembly. The following information is available for each table:
Small
Medium
Large
Initial sales price
$ 80
$120
$225
Initial cost
30
50
95
Sales price after assembly
120
160
245
Cost of assembly
20
25
40
Number sold per month
200
175
150
Refer to the Joyner Products information above. What is the maximum amount of increase in net income from further processing? A. $3,625B. $2,625C. $6,625D. $4,000
57. Serenity Garden Inc.Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company makes is unpainted gnome statues that come in three sizes: small, medium, and large. The company is considering painting the gnomes. The following information is available regarding unpainted and painted gnomes:
Small
Medium
Large
Initial sales price
$40
$60
$80
Initial cost
15
20
23
Sales price after painting
47
70
95
Cost of painting
8
9
11
Number sold per year
500
1,000
400
Refer to the Serenity Garden Inc. information above. Which gnomes, if any, should be painted? A. Small, medium, and largeB. Medium and largeC. Small and mediumD. None should be painted.
58. Serenity Garden Inc.Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company makes is unpainted gnome statues that come in three sizes: small, medium, and large. The company is considering painting the gnomes. The following information is available regarding unpainted and painted gnomes:
Small
Medium
Large
Initial sales price
$40
$60
$80
Initial cost
15
20
23
Sales price after painting
47
70
95
Cost of painting
8
9
11
Number sold per year
500
1,000
400
Refer to the Serenity Garden Inc. information above. What is the maximum amount of increase in net income from further processing? A. $2,100B. $2,600C. $7,600D. $1,600
