Making Production Decision with Constrained Resource
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 in 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.
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