97) Mudd Corp. manufactures two styles of table lamps, Gold and Silver.  The following data is available:

Gold Silver

Selling price per unit$50$70

Variable cost per unit$34$46

Machine hours required1.63

Total fixed costs$60,000

Mudd can sell a maximum of 10,000 units of each style of lamp.  Machine hour capacity is 25,000 hours per year.

Required:

a.Which lamp has the highest contribution margin per unit?

b.Which lamp has the highest contribution margin per hour?

c.How many lamps of each style should be produced to maximize income, and what is the maximum income?

98) Hawbaker Company manufactures two styles of mops, Wood and Steel.  The following information is available:

WoodSteel

Selling price per unit$15$13

Variable cost per unit$ 6$ 9

Labour hours required32

Total fixed costs$12,000

Hawbaker can sell a maximum of 5,000 units of each style of mop.  Labour hour capacity for the year is 20,000 hours.

Required:

a.Which style has the highest contribution margin per unit?

b.Which style has the highest contribution margin per hour?

c.How many of each style of mop would Hawbaker have to produce to maximize income?  What w



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