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Business, 31.05.2020 00:01 mackdoolittle1

ABC Bath Products Ltd. makes a variety of ceramic sinks and tubs. ABC has just developed a line of sinks and tubs made from a mixture of glass and ceramic. The sinks sell for GH¢ 150 each and have variable costs of GH¢ 80. The tubs sell for GH¢ 600 and have variable costs of GH¢ 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 ABC can sell as many as 1,000 sinks and 500 tubs per year. How many tubs should ABC produce?

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