Daisy Bath Products, Inc

Multiple Choice

Daisy Bath Products, Inc.(DBP) makes a variety of ceramic sinks and tubs.DBP has just developed a line of sinks and tubs made from a mixture of glass and ceramic.The sinks sell for $200 each and have variable costs of $70.The tubs sell for $700 and have variable costs of $320.The glass and ceramic sinks and tubs require the use of specialized molding equipment.The specialized molding equipment has 5,000 hours of capacity per year.A sink uses an average of 5 hours of specialized molding equipment time; a tub uses an average of 6 hours of specialized molding equipment time.
What is the contribution margin per hour of specialized molding equipment time for sinks?

A) $26
B) $19
C) $30
D) $45
E) $51