Question 6A BP makes a variety of ceramic sinks and tubs. EBP has just developed

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Question 6A
BP 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 $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 4,050 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.

What is the contribution margin per hour of specialized molding equipment time for sinks?

a $35.00

b $33.33

c $70.00

d $200.00

e $68.33





Question 6B
BP 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 $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 4,050 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 BP can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should BP produce?

a 1,000

b 500

c 410

d 675

e zero





Question 6C
BP 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 $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 4,050 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.

What is the contribution margin per hour of specialized molding time for tubs?

a $35.00

b $30.00

c $70.00

d $200.00

e $68.33






Question 6D
BP 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 $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 4,050 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.

Assuming that specialized molding equipment time is the only constrained resource, and that BP can sell as many tubs and sinks as it can produce, how many sinks should be sold?

a 2,050

b 2,025

c zero

d 4,050

e 810

Explanation / Answer

6A:a) $35.00    (Sales-variable  cost)(150-80)=70/2= $35

6B:c) 410 tubs  5hours takes for 1tub, 4,050hours takes for 410 tubs =4,050/5

6C:b) $30.00    (S-V=C) 600-450=150    150/5=$30.00

6D.b)2,025       For one sink takes 2 hours

                       For  4,050hours  = 4,050/2=2,025   

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