Pottery Inc crafts local pottery. The cost of getting the pottery ready for mark

Question

Pottery Inc crafts local pottery.

The cost of getting the pottery ready for market is about $20 per pound of clay.   

Each pound of clay produces 4 unglazed pieces of art that sells for $8 per piece.

Pottery Inc can glaze the clay for an additional $9. The glazed art will still produce 4 pieces of art that sells for $10 per piece.

By how much will Pottery's income change if they glaze 30 pounds of clay (label as an increase or decrease) as opposed to selling them unglazed?

$240 decrease

$240 increase

$30 increase

$30 decrease

none of the above

a.

$240 decrease

b.

$240 increase

c.

$30 increase

d.

$30 decrease

e.

none of the above

Explanation / Answer

If any doubt please comment

If it is unglazed the profit is Sales (4*8*30) 960 Less: cost oof sales 600 (20*30) Profit 360 If it is galzed Sales (4*10*30) 1200 Less: additional cost 270 (9*30) Less: cost to glaze 600 Profit 330 Decrease in profit by 330-360=$30 Option d is correct $30

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