Deng Corporation manufactures two styles of lamps

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Bedford Lamp and Lowell Lamp. The following per unit data are available:

	Bedford Lamp	Lowell Lamp
Sales price	$ 30$30	$ 35$35
Variable costs	$ 18$18	$ 23$23
Machine hours required for one lamp	22	44

Total fixed costs are

$ 40 comma 000$40,000.

Machine hour capacity is

25 comma 00025,000

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.

12 comma 50012,500

Bedford Lamps and

00

Lowell Lamps

B.

00

Bedford Lamps and

6 comma 2506,250

Lowell Lamps

C.

12 comma 50012,500

Bedford Lamps and

12 comma 50012,500

Lowell Lamps

D.

6 comma 2506,250

Bedford Lamps and

12 comma 50012,500

Lowell Lamps