Question
Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Each lamp must spend time on
Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Each lamp must spend time on a special machine. The firm owns four machines that together provide 18,000 hours of machine time per year. The classic lamp requires 0.20 hours of machine time, the fancy lamp requires 0.50 hours of machine time.
How many of each type of lamp must be sold to optimize total contribution margin?
Group of answer choices
0 classic lamps; 30,000 fancy lamps
0 classic lamps; 9,000 fancy lamps
90,000 classic lamps; 0 fancy lamps
10,000 classic lamps; 10,000 fancy lamps
18,000 classic lamps; 0 fancy lamps
Next
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started