Light the Night Manufacturing Company can sell a maximum of 4,000 desk lamps and 10,000 floor lamps. Desk lamps have a contribution margin of $6 per lamp and require | machine hour to produce. Floor lamps have a contribution margin of $15 per lamp and require 3 machine hours to produce. Light the Night currently has 6,400 machine hours available each month.

Required: Given this information, prepare an analysis to answer each of the following questions.

(1) How many desk lamps and floor lamps should Light the Night produce each month to earn the maximum monthly total contribution margin?

(2) What is the maximum amount Light the Night should pay per month to lease one additional machine, which can be used 360 hours per month? TYK-1