Clay Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp. The following per unit data are available:
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Total fixed costs are $30,000, and Clay can sell a maximum of 10,000 units of each style of lamp annually. Machine hour capacity is 25,000 hours per year. What is the contribution margin per unit for the Lowell lamp?
A) $4 per machine hour
B) $2 per machine hour
C) $3 per machine hour
D) $12 per machine hour
Correct Answer:
Verified
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