Question
Kingston Manufacturing has 29,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit
Kingston Manufacturing has 29,000 labor hours available for producing X and Y. Consider the following information:
| Product X | Product Y | ||||||
| Required labor time per unit (hours) | 3 | 4 | |||||
| Maximum demand (units) | 4,000 | 5,000 | |||||
| Contribution margin per unit | $ | 5 | $ | 6 | |||
| Contribution margin per labor hour | $ | 4.00 | $ | 3.50 | |||
If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set?
| Product X | Product Y | |
| A. | 0 units | 5,000 units |
| B. | 444 units | 5,000 units |
| C. | 4,000 units | 0 units |
| D. | 4,000 units | 4,250 units |
| E. | 4,000 units | 5,000 units |
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Accounting Reform In Transition And Developing Economies
Authors: Robert W. McGee
1st Edition
0387257071, 9780387257075
