Bp makes a variety of ceramic sinks and tubs ebp has just

Reference no: EM13595981

BP 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 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.Assume that BP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should BP produce?

Reference no: EM13595981

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