Question

Staci Valek began dabbling in pottery several years ago as a hobby. Her work is quite creative, and it has
been so popular with friends and others that she has decided to quit her job with an aerospace company
and manufacture pottery full time. The salary from Stac's aerospace job is $3,800 per month. Staci will
rent a small building near her home to use as a place for manufacturing the pottery. The rent will be
$500 per month. She estimates that the cost of day and glaze will be $2 for each finished piece of
pottery. She will hire workers to produce the pottery at a labor rate of $8 per pot. To sell her pots, Staci
feels that she must advertise heavily in the local area. An advertising agency states that it will handle all
advertising for a fee of $600 per month. Staci's brother will sell the pots; he will be paid a commission of
$4 for each pot sold. Equipment needed to manufacture the pots will be rented at a cost of $300 per
month. Staci has already paid the legal and filing fees associated with incorporating her business in the
state. These fees amounted to $500. A small room has been located in a tourist area that Staci will use
as a sales office. The rent will be $250 per month. A phone installed in the room for taking orders will
cost $40 per month. In addition, a recording device will be attached to the phone for taking after-hours
messages. Staci has some money in savings that is earning interest of $1,200 per year. These savings will
be withdrawn and used to get the business going. For the time being, Staci does not intend to draw any
salary from the new company
Required
1. Prepare an answer sheet with the following column headings:
produdes
period cost
ameleostalvenabiogia.cost Mdinci matrial cor dinc labor cost Monsallinnandedmin astianportunity costunk.com
2
All of the costs you have listed above, except one, would be differential costs between the al-
ternatives of Staci producing pottery or staying with the aerospace company. Which cost is not
differential? Explain​

Answer 1

Answer:

pvzogzjcxgaodfskbxhdoyaogffalodnfckgsr