Figure 13-3

question 96

Multiple Choice

Figure 13-3. Elegance Bath Products,Inc.(EBP) makes a variety of ceramic sinks and tubs.EBP has just developed a line of sinks and tubs made from a mixture of glass and ceramic.The sinks sell for $150 each and have variable costs of $80.The tubs sell for $600 and have variable costs of $450.The glass and ceramic sinks and tubs require the use of specialized molding equipment.The specialized molding equipment has 4,050 hours of capacity per year.A sink uses an average of 2 hours of specialized molding equipment time; a tub uses an average of 5 hours of specialized molding equipment time.
Refer to Figure 13-3.Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year.How many tubs should EBP produce?

• A)1,000
• B)500
• C)410
• D)675
• E)zero

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