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Managerial Accounting

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Teddy Inc.: Which Product to Process Further?

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Teddy Inc. is considering adding clothing, accessories, and hairstyles to their plain bears. If they "dress up" the bears, they can charge more for them. The expected plain and dressed up bear sales prices are shown below, along with the number of items to dress up the bears.

Teddy Inc. Price Plain Price Dressed # of dress items
Ballerina \$16 \$21 3
Doctor \$16 \$18 9
Princess \$16 \$20 12



The cost of the dress items are all similar, averaging \$.40 each, except the Princess costume which contains crystals that add \$1.10 to the total cost.

Which of the bears is more profitable "dressed" than "plain?"

Highlight Answer(s) Below

Ballerina Doctor Princess