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Famous Face Dolls Company manufactures and sells custom dolls through a network of specialty stores. The face of each doll is hand-painted by a highly
Famous Face Dolls Company manufactures and sells custom dolls through a network of specialty stores. The face of each doll is hand-painted by a highly skilled craftsperson in the image of a popular public figure. Large dolls (75-80 cm) sell for $200 each and have a unit variable cost of $80. Each large doll requires 30 minutes of painting time. Small dolls (40-45 cm) sell for $90 and have a unit variable cost of $66.00. Each small doll requires 15 minutes of painting time. Typical demand is 200 large dolls and 400 small dolls per month. Due to upcoming vacations, the amount of available face-painting time is limited to 180 hours for the next month. The contribution margin per hour of painting time is: Question 9Answer a. $240/hour for large dolls and $96/hour for small dolls b. $120/hour for large dolls and $24/hour for small dolls c. $2.50/hour for large dolls and $6.06/hour for small dolls d. $280/hour for large dolls and $156/hour for small dolls
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