Solved

Elegance Bath Products, Inc

Question 130

Multiple Choice

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 cost of $450. The glass and ceramic sinks and tubs require the use of specialized moulding equipment. The specialized moulding equipment has 4,050 hours of capacity per year. A sink uses an average of two hours of specialized moulding equipment time; a tub uses an average of five hours of specialized moulding equipment time.
-Refer to the Figure.Assume that specialized moulding 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) 0
B) 810
C) 2,025
D) 2,050

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions