Clay Corporation manufactures two styles of lampsa Bedford Lamp and a Lowell Lamp. The following 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. Marketing data indicate that the company can sell up to 8,000 units of the Bedford lamp and up to 4,000 units of the Lowell lamp. Machine hour capacity is 25,000 hours per year. What product mix will deliver the optimum operating income?

A) 4,500 Bedford lamps, 4,000 Lowell lamps

B) 12,500 Bedford lamps, zero Lowell lamps

C) 8,000 Bedford lamps, 2,250 Lowell lamps

D) 7,500 Bedford lamps, 3,000 Lowell lamps

3) True or False: Purely Pizza Company sells pizzas in two different sizesmedium and large. The number of medium pizzas sold is twice the number of large pizzas sold. The contribution margin of a medium pizza is $10 and the contribution margin of a large pizza is $16. The weighted average contribution margin is $15.