Smith Manufacturing has 12,000 labour hours available for producing X and Y.

Consider the following information: Product X Product Y

Required labour time per unit (hours) 2 3

Maximum demand (units) 6,000 8,000

Contribution margin per unit $5.00 $6.00 If Smith follows proper managerial accounting practices, which of the following production schedules should the company set?

A.

8000 units of Product Y only.

B.

6000 units of Product X and 5000 units of Product Y.

C.

1500 units of Product X and 8000 units of Product Y.

D.

6000 units of Product X only