Question
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 $80 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 $ 27.50 $ 15.00 Direct Labour $ 17.00 $ 13.00 Variable Manufacturing Overhead $ 9.00 $ 7.00 Fixed Manufacturing Overhead $ 8.00 $ 8.00 Sales Commissions $ 1.75 $ 1.75 Fixed Admin $ 2.50 $ 2.50 9.6 How many pounds of raw material are needed for the large and small lamps?
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