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Figure 13-3

Question 14

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.Assuming that specialized molding equipment time is the only constrained resource,and that EBP can sell as many tubs and sinks as it can produce,how many sinks should be sold?


A) 2,050
B) 2,025
C) zero
D) 4,050
E) 810

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