Serenity Garden Inc -What Is the Maximum Amount That Net Income Could Increase

question 3

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:
$\begin{array}{lrrr}&\text { Small}&\text { Medium } & \text { Large }\\\text { Initial sales price } & \$ 40 & \$ 60 & \$ 80 \\\text { Initial cost } & 15 & 20 & 23 \\\text { Sales price after painting } & 47 & 70 & 95 \\\text { Cost of painting } & 8 & 9 & 11 \\& & & \\\text { Number sold per year } & 500 & 1000 & 400\end{array}$
-What is the maximum amount that net income could increase each year with further processing?

• A) $2100
• B) $2600
• C) $7600
• D) $1600

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