Question
PPC bath products LTD. makes a variety of ceramic sinks and tubs. PPC has just developed a line of sinks and tubs made from a
PPC bath products LTD. makes a variety of ceramic sinks and tubs. PPC 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 4050 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 PPC can sell as many 1000 sinks and 500 tubs per year. How many tubs should PPC produce?
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