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Smythe Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information: Product X Product Y Required labor timer per unit
Smythe Manufacturing has 27,000 labor hours available for producing X and Y.
Consider the following information:
Product X | Product Y | |
Required labor timer per unit (hours) | 2 | 3 |
Maximum demand (units) | 6,000 | 8,000 |
Contribution margin per unit | $5.00 | $6.00 |
Contribution margin per labor hour | $2.50 | $2.00 |
If Smythe follows proper managerial accounting practices, how many units of Product Y should it produce?
Group of answer choices
8,000.
4,500.
6,000.
5,000.
1,500.
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