Frances’s Floral Shop (FFS) produces and sells a wide range of floral arrangements. Designers, who are paid $30 per hour, produce the arrangements with the help of assistants, who are paid $18 per hour. There are 200 designer hours available for this period; however, 180 have already been committed. There are unlimited assistant hours available for the period. 

Fixed costs at FFS amount to $2,000 per period. Fixed costs are allocated to customers at a rate of $10 per designer hour. FFS has just received a request to produce floral arrangements for a wedding. Frances estimates that completing this order will require $1,200 of materials, 14 designer hours, and 6 assistant hours. 

Required 

(a) What is the minimum price that FFS should charge for this order? 

(b) Suppose now that FFS has already committed to using 190 designer hours this month. If needed, a designer can be diverted from producing arrangements that sell for $25, have total variable costs of $16, and require 15 designer minutes, the cost of which is included in the $16 variable cost. What is the minimum price that FFS should charge for this order?