Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company makes isunpainted 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:
|
Small
|
Medium
|
Large
|
|
Initial sales price
|
$40
|
$60
|
$80
|
|
Initial cost
|
15
|
20
|
23
|
|
Sales price after painting
|
49
|
70
|
95
|
|
Cost of painting
|
8
|
12
|
16
|
|
|
|
|
|
Number sold per year
|
500
|
1,000
|
400
|
Refer to the Serenity Garden Inc. information above. Whichgnomes, if any, should be painted? Explain your answer.