Question
The contribution margin per unit is $10 for product X and $15 for product Y. It takes 2.5 hours to produce each unit of product
The contribution margin per unit is $10 for product X and $15 for product Y. It takes 2.5 hours to produce each unit of product X and 3 hours to produce each unit of product Y. Fargo has a maximum production capacity of 25,000 machine hours and the demand for products X and Y is a maximum of 5,000 units each. How many units of product X and units of product Y should be produced?
Multiple Choice
A 4,000 of product X and 5,000 of product Y
B 2,000 of product X and 5,000 of product Y
C None of these.
D 5,000 of product X and 5,000 of product Y
E 1,000 of product X and 5,000 of product Y
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