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Question 1 (10 points) Saved Elegance Bath Products (EBP) makes a variety of ceramic sinks and tubs. EBP has just developed a line of sinks
Question 1 (10 points) Saved Elegance Bath Products (EBP) 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 $180 each and have variable costs of $80. The tubs sell for $600 and have variable costs of $450. The glass and ceramic sinks and tubs require the use of specialised moulding equipment. The specialised moulding equipment has 4,500 hours of capacity per year. A sink uses an average of 2 hours of specialised moulding equipment time; a tub uses an average of 5 hours of specialised moulding equipment time. Required: 1. What is the contribution margin per hour of specialised moulding equipment time for sinks? 2. What is the contribution margin per hour of specialised moulding time for tubs? 3. Assume that EBP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should EBP produce
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