Deng Corporation Manufactures Two Styles of Lamps - Bedford Lamp

Deng Corporation manufactures two styles of lamps - Bedford Lamp and Lowell Lamp. The following per unit data are available: $$\begin{array} { | l | r | r | } \hline & \text { Bedford Lamp } & \text { Lowell Lamp } \\\hline \text { Sales price } & \$ 25 & \$ 35 \\\hline \text { Variable costs } & \$ 17 & \$ 23 \\\hline \text { Machine hours required for one lamp } & 2 & 4 \\\hline\end{array}$$ Total fixed costs are $40,000. Machine hour capacity is 20,000 hours per year. Assuming that the company can sell as many products as it can make, which product mix would deliver the highest operating income?

A) 5000 Bedford Lamps and 10,000 Lowell Lamps
B) 0 Bedford Lamps and 5000 Lowell Lamps
C) 10,000 Bedford Lamps and 0 Lowell Lamps
D) 10,000 Bedford Lamps and 10,000 Lowell Lamps