Clay Corporation manufactures two styles of lamps-a Bedford Lamp and a Lowell Lamp. The following per unit data are available:
| Bedford Lamp |
Lowell Lamp |
| Sale price |
$25 |
$35 |
| Variable costs |
$17 |
$23 |
| Machine hours required for 1 lamp |
2 |
4 |
Total fixed costs are$30,000. Machine hour capacity is 25,000 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. 12,500 Bedford lamps, zero Lowell lamps
B. Zero Bedford lamps, 6,250 Lowell lamps
C. 12,500 Bedford lamps, 12,500 Lowell lamps
D. 10,000 Bedford lamps, 1,250 Lowell lamps