Kingston Manufacturing has 29,900 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit (hours) 2 3 Maximum demand (units) 7,000 8,000 Contribution margin per unit $ 5 $ 6 Contribution margin per labor hour $ 2.00 $ 1.50 If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set? Product X Product Y A. 0 units 8,000 units B. 1,750 units 8,000 units C. 7,000 units 0 units D. 7,000 units 5,300 units E. 7,000 units 8,000 units Multiple Choice Choice A Choice B Choice C Choice D Choice E

In early July, Colin Marks purchased a $86 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was expected to cost approximately $38, and Marks would probably spend another $31 for a souvenir program and food. It is now December 14. The Shippers were having a miserable season and the temperature was expected to peak at 5 degrees on game day. Marks therefore decided to skip the game and took his wife to the movies, with tickets and dinner costing $67. The sunk cost associated with this decision situation is:

Multiple Choice

• $67.

• None of the answers is correct.

• $86.

• $19.