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    North York Statue Company : Determine the product mix for statues that allows maximization of the company's operating margin

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    North York Statue Company makes miniature Mountie statues from cast iron. Sales total 40,000 units a year. the statues are finished either rough or polished, with an average demand of 60 percent rough and 40 percent for polished. Iron ingots, the direct material, costs $6 per kilogram. Processing costs are $200 to convert 20 kilograms into 40 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 the product mix for statues that allows maximization of the company's operating margin.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:16 pm ad1c9bdddf
    https://brainmass.com/business/accounting/determine-product-mix-statues-allows-maximization-53652

    Solution Summary

    The expert determines the product mix for statues that allows maximization.

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