Misbah Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp.The following per unit data are available:
Total fixed costs are $60,000.Marketing data indicate that the company can sell up to 8000 units of the Bedford Lamp and up to 4000 units of the Lowell Lamp.Machine hour capacity is 25,000 hours per year.Which product mix will deliver the optimum operating income?
A) 8000 Bedford Lamps and 4000 Lowell Lamps
B) 4000 Bedford Lamps and zero Lowell Lamps
C) 8000 Bedford Lamps and 2250 Lowell Lamps
D) 4000 Bedford Lamps and 1000 Lowell Lamps
Correct Answer:
Verified
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