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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

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 (75-80cm) sell for
$200 each and have a unit variable cost of $90. Each large doll requires 30
minutes of painting time. Small dolls (40-45cm) sell for $100 and have a unit
variable cost of $65.00. Each small doll requires 15 minutes of painting time.
Typical demand is 150 large dolls and 500 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:
a. $110? hour for large dolls and $35? hour for small dolls
b. $290? hour for large dolls and $165? hour for small dolls
c. $220? hour for large dolls and $140? hour for small dolls
d. $1.67? hour for large dolls and $7.69? hour for small dolls
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