Question
Kingston Manufacturing has 40,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor time per unit
Kingston Manufacturing has 40,000 labor hours available for producing X and Y. Consider the following information:
| Product X | Product Y | ||||||
| Required labor time per unit (hours) | 4 | 5 | |||||
| Maximum demand (units) | 7,000 | 8,000 | |||||
| Contribution margin per unit | $ | 5 | $ | 6 | |||
| Contribution margin per labor hour | $ | 3.50 | $ | 3.00 | |||
If Kingston follows proper managerial accounting practices, how many units of Product Y should it produce?
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Managerial Decision Modeling With Spreadsheets
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
3rd Edition
718
