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

Total fixed costs are $40,000. Machine hour capacity is 30,000 hours per year. The Lowell lamp has the highest contribution margin per unit, and also has the highest contribution margin per machine hour, so the company should focus sales on the Lowell lamp.

Transcribed Image Text:

Sale price Variable costs Machine hours required for 1 lamp Bedford Lamp $30 $18 12 Lowell Lamp $40 $24 14 Sale price Variable costs Machine hours required for 1 lamp Bedford Lamp $30 $18 12 Lowell Lamp $40 $24 14

Answer rating: 100% (QA)

The statement is FALSE Explanation Bedford Lamp Lowell Lamp Sale p... View the full answer