Clay Corporation manufactures two styles of lamps, a Bedford Lamp and a Lowell Lamp.Thefollowing per unit data are available:

Bedford Lamp Lowell Lamp

Sale Price $25 $35

Variable Costs $17 $23

Machine hours required for 1 lamp 2 4

Total fixed costs are $30,000 and Clay can sell a maximum of 10,000 units of each style of lampannually.Machine hour capacity is 25,000 hours per year.

Requirements:

A)Determine the contribution margin per unit for each type of lamp.

B)Determine the contribution margin per machine hour for each type of lamp.

C)Determine the number of units of each style of lamp that Clay should produce to maximize operating income.

D)What is the dollar amount of the maximum operating income as calculated in C) above?