Question
Deng Corporation manufactures two styles of lamps Bedford Lamp and Lowell Lamp. The following per unit data are available: Bedford Lamp Lowell Lamp Sales price
Deng Corporation manufactures two styles of lamps Bedford Lamp and Lowell Lamp. The following per unit data are available: Bedford Lamp Lowell Lamp Sales price $30 $35 Variable costs $18 $23 Machine hours required for one lamp 2 4 Total fixed costs are $50,000. Machine hour capacity is 30,000 hours per year. Assuming that the company can sell as many products as it can make, which product mix would deliver the highest operating income? a 7500 Bedford Lamps and 15,000 Lowell Lamps b 0 Bedford Lamps and 7500 Lowell Lamps c 15,000 Bedford Lamps and 0 Lowell Lamps d 15,000 Bedford Lamps and 15,000 Lowell Lamp
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