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:
$\begin{array}{lrrr}
&\text { Small}&\text { Medium } & \text { Large }\
\text { Initial sales price } & \$ 40 & \$ 60 & \$ 80 \
\text { Initial cost } & 15 & 20 & 23 \
\text { Sales price after painting } & 47 & 70 & 95 \
\text { Cost of painting } & 8 & 9 & 11 \
& & & \
\text { Number sold per year } & 500 & 1000 & 400
\end{array}$

-Which gnomes,if any,should be painted?

Question

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:
$\begin{array}{lrrr}
&\text { Small}&\text { Medium } & \text { Large }\
\text { Initial sales price } & \$ 40 & \$ 60 & \$ 80 \
\text { Initial cost } & 15 & 20 & 23 \
\text { Sales price after painting } & 47 & 70 & 95 \
\text { Cost of painting } & 8 & 9 & 11 \
& & & \
\text { Number sold per year } & 500 & 1000 & 400
\end{array}$

-Which gnomes,if any,should be painted?

Quizplus · Accepted Answer

Painting the medium and large gnomes increases their profit margins. For medium gnomes, the profit increases from $40 to $41, and for large gnomes, it increases from $57 to $61. However, painting small gnomes decreases the profit from $25 to $24.

Serenity Garden Inc -Which Gnomes,if Any,should Be Painted? A) Small,medium,and Large B) Medium

Serenity Garden Inc -Which Gnomes,if Any,should Be Painted?
A) Small,medium,and Large
B) Medium