New York Liberty Corporation Makes Miniature Statues of the Empire

question 145

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 $6 per pound.Processing costs are $300 to convert 30 pounds into 60 statues.Rough statues are sold for $15 each,and polished statues can be sold for $18 or engraved for an additional cost of $5.Polished statues can then be sold for $30.
Required:
Determine whether New York Liberty Company should sell the engraved statutes.Why?

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Definitions:

Pleasure

A feeling of happiness, enjoyment, or satisfaction derived from an experience deemed positive by an individual.

Stateville

A reference to Stateville Correctional Center, a maximum-security state prison for men in Crest Hill, Illinois, USA.

Discretion

The freedom to decide what should be done in a particular situation, often used in legal and law enforcement contexts.