Rice Corporation manufactures two styles of lampsa Bedford Lamp and a Lowell Lamp. The following per ...

Rice Corporation manufactures two styles of lampsa Bedford Lamp and a Lowell Lamp. The following per unit data are available:

Bedford LampLowell Lamp
Sales price$25$35
Variable costs$17$23
Machine hours required for one lamp24

Total fixed costs are $50,000. 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) 6,250 Bedford Lamps and 12,500 Lowell Lamps
B) 0 Bedford Lamps and 6,250 Lowell Lamps
C) 12,500 Bedford Lamps and 0 Lowell Lamps
D) 12,500 Bedford Lamps and 12,500 Lowell Lamps