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Copper Inc produces magic lamps made out of copper. In the current year Copper Inc began to face a problem with their supply chain. Copper
Copper Inc produces magic lamps made out of copper. In the current year Copper Inc began to face a problem with their supply chain. Copper Inc is not able to purchase enough Copper in order to produce their two different sized magic lamps [large and small} which are sold for $30 and $60 respectively. However, Copper Inc has a problem and currently only able to procure 60,000 pounds of copper per year at an average cost per pound of $5 Copper is the only direct material used in either of the magic lamps. Details on each lamp is below: Large Magic Lamp Small Magic Lamp Direct Material 5 27.50 S 15 .00 Direct Labour 5 17.00 S 13 .00 Variable Manufacturing Overhead S 9.00 S 7.00 Fixed Manufacturing Overhead S 8.00 S 8.00 Sales Commissions 5 1.?5 5 1.75 Fixed Admin $ 2.50 $ 2.50 9.8 If the demand for large and small lamps E 6,000 and 14,500, respectively, how many units should be produced o_feach? 9.9 What would b_e the total contribution margin b_e based on the units from 9.8
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