The Rural Urban Company is considering manufacturing and selling four different types of lamps. The lamps have a similar design and will sell for the same price and have the same costs. Rural has come up with the following information regarding the manufacturing and selling of the lamps (variable amounts on a per unit basis; fixed expenses in annual totals):Variable data: Selling Price $70; Direct Materials $15; Direct Labor $10; Variable Overhead $20; Variable Shipping Costs $5. Annual fixed expenses: Overhead $150,000; Selling and Administrative $125,000.
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