New York Liberty Corporation Makes Miniature Statues of the Empire

question 3

Essay

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 $5 per pound. Processing costs are $300 to convert 30 pounds into 60 statues. Rough statues are sold for $17 each, and polished statues can be sold for $19 or engraved for an additional cost of $5. Polished statues can then be sold for $32.
Required:
Determine whether New York Liberty Company should sell the engraved statutes. Why?

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Definitions:

Systolic Blood Pressure

The pressure in the arteries when the heart beats, noted as the higher number in a blood pressure reading.

Weekly Weight

A measure of a person's body weight recorded on a weekly basis to monitor changes over time.

Refeeding

The process of reintroducing food after a period of malnutrition or starvation, which must be done carefully to prevent Refeeding Syndrome, a potentially fatal condition.