Rice Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp.The following per unit data are available: Total fixed costs are $50,000.Machine hour capacity is 25,000 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) 5,000 Bedford Lamps and 6,250 Lowell Lamps
B) 0 Bedford Lamps and 5,000 Lowell Lamps
C) 6,250 Bedford Lamps and 0 Lowell Lamps
D) 6,250 Bedford Lamps and 6,250 Lowell Lamps
Correct Answer:
Verified
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