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:
Refer to the Serenity Garden Inc. information above. 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:
 Refer to the Serenity Garden Inc. information above. Which gnomes, if any, should be painted?

Quizplus · Accepted Answer

According to the analysis, painting medium and large gnome statues would result in a profit increase of $0.75 and $1.50, respectively. However, painting small gnomes would incur a cost of $0.25 per unit, resulting in a profit decrease. Therefore, only medium and large gnomes should be painted to maximize profits.