New York Liberty Corporation makes miniature statues of the Empire State Building from cast iron.Sales total 50,000 units a year.The statues are finished either rough or polished,with an average demand of 60% rough and 40% polished.Iron ingots,the direct material,costs $6 per pound.Processing costs are $300 to convert 30 pounds into 60 statues.Rough statues are sold for $15 each,and polished statues 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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The Answer of New York Liberty Corporation makes miniature statues of the Empire State Building from cast iron.Sales total 50,000 units a year.The statues are finished either rough or polished,with an average demand of 60% rough and 40% polished.Iron ingots,the direct material,costs $6 per pound.Processing costs are $300 to convert 30 pounds into 60 statues.Rough statues are sold for $15 each,and polished statues 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?

New York Liberty Corporation Makes Miniature Statues of the Empire