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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 (75-80 cm) sell for $150 each and have a unit variable cost of $90. Each large doll requires 30 minutes of painting time. Small dolls (40-45 cm) sell for $100 and have a unit variable cost of $64.00. Each small doll requires 15 minutes of painting time. Typical demand is 200 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:
Question 9 Answer
a.
$2.00/hour for large dolls and $2.40/hour for small dolls
b.
$120/hour for large dolls and $144/hour for small dolls
c.
$180/hour for large dolls and $256/hour for small dolls
d.
$300/hour for large dolls and $400/hour for small dolls

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