Luxury Shower Products, Inc. makes a variety of ceramic showers and tubs. Luxury has just...
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Luxury Shower Products, Inc. makes a variety of ceramic showers and tubs. Luxury has just developed a line of showers and tubs made from a mixture of glass and ceramic. The showers sell for $150 each and have variable costs of $80. The tubs sell for $600 and have variable costs of $450. The glass and ceramic showers and tubs require the use of specialized molding equipment. The specialized molding equipment has 4,050 hours of capacity per year. A shower uses an average of 2 hours of specialized molding equipment time; a tub uses an average of 5 hours of specialized molding equipment time Which product produces the highest Contribution per hour of specialized molding time? Assume that Luxury Shower Products can sell as many as 1,000 showers and 500 tubs per year. How many tubs should EBP produce? You will select 2 correct answers based on the 2 separate questions asked in this problem. 1,000 tubs 410 tubs Showers produce the highest Contribution per hour of specialized molding time 675 tubs 500 tubs Tubs produce the highest Contribution per hour of specialized molding time
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