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Kingston Manufacturing has 10,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit
Kingston Manufacturing has 10,000 labor hours available for producing X and Y. Consider the following information:
Product X | Product Y | |
Required labor time per unit (hours) | 1 | 2 |
Maximum demand (units) | 7,000 | 6,000 |
Contribution margin per unit | $6 | $8 |
Contribution margin per labor hour | $6 | $4 |
If Kingston follows proper managerial accounting practices, how many units of Product Y should it produce?
2,000.
2,200.
3,000.
7,000.
6,000.
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