The Demand for Ballard's Glass Company's Products Varies, Ranging from 10

Multiple Choice

The demand for Ballard's Glass Company's products varies, ranging from 10 to 20 windows a day with an average of 15. John Ballard works eight hours a day, five days a week. Each order is one window, and each window takes 26 minutes to install. The company plans to add doors to its product line and anticipates that they will sell an average of 5 doors per day. Each door takes 12 minutes to install. Ballard is concerned with the increased waiting time if it adds doors. To offset this concern it can hire a part-time employee. This will decrease window time to 20 minutes and door time to 10 minutes; increase the costs of windows from $10 to $12 and doors from $6 to $7.50. Since Ballard is giving customers faster service it will increase its prices from $17 to $20 for windows and from $10 to $12 for doors.
What is the expected daily revenue with and without doors, respectively, assuming average sales units are used and it hires a part-time employee if doors are sold?

A) $230 and $170
B) $260 and $200
C) $360 and $255
D) $315 and $300
E) $400 and $340