Question: She would need 50 cutting boards per year and will pay between $35 and $45 depending on the size of the board (small or medium).
She would need 50 cutting boards per year and will pay between $35 and $45 depending on the size of the board (small or medium). He estimates that it will take three hours to make each board; the most laborintensive element is sanding at roughly two hours. He is thinking of an alternative for sanding: - Ask a semi-retired neighbor to do the sanding, using Adam's woodshop, supplies, and sanders, and pay $10 per hour - the same amount the neighbor earns in a current part-time job. How much would it cost to make a small cutting board? How much for a medium one? Use normal costing rather than relevant costing, if different, under all scenarios. For example, Adam does all the sanding or avails of one of the three options outlined in the case. Based on your answer and the price Suzie is willing to pay, what would his profit margin be on each size of cutting board if he does all the work himself, and what does this translate into on an hourly basis
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