Multiple Choice Question\ Long-Run Inc. produces two products, Product

x

and Product

Y

. The contribution margin that the company can earn by selling Product

x

is

$1,000

per unit, but it requires 20 machine hours to produce the product. From Product

Y

, the company can earn a contribution margin of

$600

per unit, but its production requires 10 machine hours. Because the capacity of machine time is limited to 1,500 hours, the company can produce only one product. Based on the scenario, the company should produce\ Product

x

because the contribution margin per hour for Product

x

is

$50

, whereas the contribution margin per hour for Product

Y

is

$45

\ Product

Y

because the contribution margin per hour for Product

Y

is

$60

, whereas the contribution margin per hour for Product

x

is

$50

\ Product

Y

because the contribution margin per hour for Product

Y

is

$20

, whereas the contribution margin per hour for Product

x

is

$10

\ Product

x

because the contribution margin per hour for Product

x

is

$10

, whereas the contribution margin per hour for Product

Y

is

$5

.

Long-Run Inc. produces two products, Product X and Product Y. The contribution margin that the company can earn by selling Product X is $1,000 per unit, but it requires 20 machine hours to produce the product. From Product Y, the company can earn a contribution margin of $600 per unit, but its production requires 10 machine hours. Because the capacity of machine time is limited to 1,500 hours, the company can produce only one product. Based on the scenario, the company should produce Product X because the contribution margin per hour for Product X is $50, whereas the contribution margin per hour for Product Y is $45 Product Y because the contribution margin per hour for Product Y is $60, whereas the contribution margin per hour for Product X is $50 Product Y because the contribution margin per hour for Product Y is $20, whereas the contribution margin per hour for Product X is $10 Product X because the contribution margin per hour for Product X is $10, whereas the contribution margin per hour for Product Y is $5