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

question 10

Multiple Choice

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:
 Small Medium  Large  Initial sales price $40$60$80 Initial cost 152023 Sales price after painting 477095 Cost of painting 8911 Number sold per year 5001000400\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?


Definitions:

Accounts Receivable Policies

Guidelines and procedures a company follows to manage money owed by customers for goods or services delivered on credit.

Shares of Stock

Shares, as units of corporate or asset ownership, provide an even allocation of profit distributions in the guise of dividends, pending announcements.

Cash Flow

A financial term describing the net amount of cash and cash-equivalents being transferred into and out of a business.

Firm's Assets

All owned resources with economic value that an entity (firm) possesses, anticipated to provide future benefits.

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