11) New York Liberty Corporation makes miniature Statutes of Liberty from cast iron. Sales total 40,000 units a year. The statutes are finished either rough or polished, with an averag demand of 60% rough and 40% polished. Iron ingots, the direct material, costs $6 per pound. Processing costs are $200 to convert 20 pounds into 40 statutes. Rough statutes are sold for $15 each, and polished statutes can be sold for $18 or engraved for an additional cost of $5. Polished statues can then be sold for $30. Required: Determine whether New York Liberty Company should sell the engraved statutes. Why?

11) New York Liberty Corporation makes miniature Statutes of Liberty from cast iron. Sales total 40,000 units a year. The statutes are finished either rough or polished, with an averag demand of 60% rough and 40% polished. Iron ingots, the direct material, costs $6 per pound. Processing costs are $200 to convert 20 pounds into 40 statutes. Rough statutes are sold for $15 each, and polished statutes can be sold for $18 or engraved for an additional cost of $5. Polished statues can then be sold for $30. Required: Determine whether New York Liberty Company should sell the engraved statutes. Why?

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Description: **Short Answer:**Write the word or phrase that best completes each statement or answers the question.11) New York Liberty Corporation makes miniature Statutes of Liberty from cast iron. Sales total 40,000 units a year. The statutes are finished eith

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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