# Refer to the information presented in M7-9. Suppose that Juanita has developed a rectangular, medium-size ceramic pot.

## Question:

Refer to the information presented in M7-9. Suppose that Juanita has developed a rectangular, medium-size ceramic pot. It requires 3 hours of kiln time; however, two medium-size pots can fit m the kiln at once. The medium-size pots would sell for \($55\) each and have variable cost of \($10\) per pot. Determine which type of pot Juanita should produce and explain your answer.

**Data from M7-9**

Juanita Poblamo makes large ceramic pots for use in outdoor landscape. She currently has two models, one square and the other round. Because of the size of Juanita’s creations, only one pot can be fired in the kiln at a time. Information about each model follows:

## Step by Step Answer:

**Related Book For**

## Managerial Accounting

**ISBN:** 9780078110771

1st Edition

**Authors:** Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips