Adoming Jewels, Inc., is a bcal jewelry store in a small United States tourist town. The...

 

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Adoming Jewels, Inc., is a bcal jewelry store in a small United States tourist town. The town is home to a major university with devoted football and basketball fans. The business is considering relocating to one of two locations: on a side street of the main shopping area or on the main shopping street. The rent for the side street property is approximately half the rent on the main street. Most of the jewelry is designed by the owner, a certified gemologist with fifteen years of retail jewelry experience in this town, and the most popular inventories are silver and fourteen- karat (14K) gold pendants. The owner wears a gold pendant she made of the university mascot, which she copied from another piece of costume jewelry. Customers have requested she produce more pendants to add to her inventory. There is unused capacity of the current machinery, and up to 30 pendants could be produced in one year without impacting other products. The cost of materials to produce the pendant in silver is $8. To produce the pendant in gold would require $37 at the current price of 14K gold. A small diamond could be added for an additional $38. The time to produce one silver or gold pendant is 1 hour at a rate of $20 per hour, except for pendants with diamonds, which take 1.5 hours. The direct labor itself is performed by the owner. There are two part-time employees whose salaries are included in overhead costs. Overhead costs, allocated on retail hours in a week, would be $14 per hour for the side street location or $19 per hour for the main street bocation. Sales prices at either location for the pendant are as follows: Silver Gold Gold with diamonds $50 $95 $170 What is the contribution margin for one siver pendant? OA) $20 B) $22 C) $30 OD) $42 The gold pendant of the university mascot can be considered which of the following types of good? OA) Unsought good OB) Shopping good C) Specialty good D) Convenience good Assume that the main street location is chosen and annual expected demand is for 20 silver pendants, 8 gold pendants, and 10 gold pendants with diamonds. Which achievable combination of sales will produce the highest profit? A) 12 silver, 8 gold, and 10 gold with diamonds B) 20 silver, 8 gold, and 2 gold with diamonds C) 20 silver, 0 gold, and 10 gold with diamonds D) 20 silver, 4 gold, and 6 gold with diamonds The owner of Adoming Jewels, Inc., wants to conduct a marketing research study. Her highest priority should be collecting information on OA) customer shopping habits B) customer satisfaction C) the cost of rent for the new bcation D) the cost of utilities for the new location Adoming Jewels, Inc., is a bcal jewelry store in a small United States tourist town. The town is home to a major university with devoted football and basketball fans. The business is considering relocating to one of two locations: on a side street of the main shopping area or on the main shopping street. The rent for the side street property is approximately half the rent on the main street. Most of the jewelry is designed by the owner, a certified gemologist with fifteen years of retail jewelry experience in this town, and the most popular inventories are silver and fourteen- karat (14K) gold pendants. The owner wears a gold pendant she made of the university mascot, which she copied from another piece of costume jewelry. Customers have requested she produce more pendants to add to her inventory. There is unused capacity of the current machinery, and up to 30 pendants could be produced in one year without impacting other products. The cost of materials to produce the pendant in silver is $8. To produce the pendant in gold would require $37 at the current price of 14K gold. A small diamond could be added for an additional $38. The time to produce one silver or gold pendant is 1 hour at a rate of $20 per hour, except for pendants with diamonds, which take 1.5 hours. The direct labor itself is performed by the owner. There are two part-time employees whose salaries are included in overhead costs. Overhead costs, allocated on retail hours in a week, would be $14 per hour for the side street location or $19 per hour for the main street bocation. Sales prices at either location for the pendant are as follows: Silver Gold Gold with diamonds $50 $95 $170 What is the contribution margin for one siver pendant? OA) $20 B) $22 C) $30 OD) $42 The gold pendant of the university mascot can be considered which of the following types of good? OA) Unsought good OB) Shopping good C) Specialty good D) Convenience good Assume that the main street location is chosen and annual expected demand is for 20 silver pendants, 8 gold pendants, and 10 gold pendants with diamonds. Which achievable combination of sales will produce the highest profit? A) 12 silver, 8 gold, and 10 gold with diamonds B) 20 silver, 8 gold, and 2 gold with diamonds C) 20 silver, 0 gold, and 10 gold with diamonds D) 20 silver, 4 gold, and 6 gold with diamonds The owner of Adoming Jewels, Inc., wants to conduct a marketing research study. Her highest priority should be collecting information on OA) customer shopping habits B) customer satisfaction C) the cost of rent for the new bcation D) the cost of utilities for the new location

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The contribution margin for one silver pendant is Selling price Variable costs 50 8 materials 20 lab... View the full answer