Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Square $70 $15 2.5 hours Round Sales price Variable cost $90 $20 3.5 hours Firing time Suppose that Anne has developed a rectangular, medium-size ceramic pot. It requires four hours of kiln time; however, two medium-size pots can fit in the kiln at once. The mediur size pots would sell for $60 each and have variable cost of $10 per pot. If Anne has only 40 hours of firing time available per week, what is the maximum amount of contribution margin she can earn per week? Maximum Contribution Margin
Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Square $70 $15 2.5 hours Round Sales price Variable cost $90 $20 3.5 hours Firing time Suppose that Anne has developed a rectangular, medium-size ceramic pot. It requires four hours of kiln time; however, two medium-size pots can fit in the kiln at once. The mediur size pots would sell for $60 each and have variable cost of $10 per pot. If Anne has only 40 hours of firing time available per week, what is the maximum amount of contribution margin she can earn per week? Maximum Contribution Margin
Chapter1: Financial Statements And Business Decisions
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how would i find the maximum contribution margin?
Transcribed Image Text:Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only
one pot can be fired in the kiln at a time.
Information about each model follows:
Square
$70
$15
2.5 hours
Round
Sales price
Variable cost
$90
$20
3.5 hours
Firing time
Suppose that Anne has developed a rectangular, medium-size ceramic pot. It requires four hours of kiln time; however, two medium-size pots can fit in the kiln at once. The mediur
size pots would sell for $60 each and have variable cost of $10 per pot.
If Anne has only 40 hours of firing time available per week, what is the maximum amount of contribution margin she can earn per week?
Maximum Contribution Margin
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