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Kingston Manufacturing has 35,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit
Kingston Manufacturing has 35,000 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) | 6,000 | 7,000 | |||||
Contribution margin per unit | $ | 6 | $ | 7 | |||
Contribution margin per labor hour | $ | 2.00 | $ | 1.50 | |||
If Kingston follows proper managerial accounting practices, how many units of Product X should it produce?Multiple Choice
4,250.
667.
7,000.
2,667.
6,000.
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