Painting the gnomes, The company is considering painting

Painting the gnomes

Reference no: EM13256683

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.

Reference no: EM13256683

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