Clay Corporation Manufactures Two Styles of Lamps-A Bedford Lamp and a Lowell

Clay Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp. The following per unit data are available: $$\begin{array} { | l | r | r | } \hline & \text { Bedford Lamp } & \text { Lowell Lamp } \\\hline \text { Sale price } & \$ 25 & \$ 35 \\\hline \text { Variable costs } & \$ 17 & \$ 23 \\\hline \text { Machine hours required for 1 lamp } & 2 & 4 \\\hline\end{array}$$ 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 machine hour for the Lowell lamp?

A) $4 per machine hour
B) $2 per machine hour
C) $3 per machine hour
D) $12 per machine hour