Mudd Corp Manufactures Two Styles of Table Lamps, Gold and Silver

question 100

Essay

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

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Definitions:

Golgi Tendon Reflex

A protective mechanism that prevents muscle damage during excessive force generation by causing muscle relaxation.

Muscle Spindle

Three to 10 specialized muscle fibers supplied by gamma motor neurons and wrapped in sensory nerve endings; detects stretch of the muscle and is involved in maintaining muscle tone.

Reflex Arc

A neural pathway that mediates an immediate response to a stimulus without conscious brain involvement.

Interneuron

A type of neuron that serves as a relay or link between sensory and motor neurons within the central nervous system.