Sand Corporation manufactures two styles of lamps—a Bedford Lamp and a Lowell Lamp

The following per unit data are available:

Bedford Lamp Lowell Lamp
Sales price $20 $36
Variable costs $5 $10
Machine hours required for one lamp 3 8

Total fixed costs are $42,000, and the machine hour capacity is 32,000 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.
Indicate whether the statement is true or false

FALSE .Bedford Lamp Lowell Lamp
Sales price $20 $36
Variable cost per unit 5 10
Contribution margin per unit $15 $26
Machine hours per unit 3 8
Contribution margin per machine hour ($15 / 3 hours) $5
Contribution margin per machine hour [($26 ) / 8 hours] $3.25

Because contribution margin per machine hour of a Lowell Lamp is less than a Bedford Lamp, the above statement is false.