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The DOT Company manufactures two products, X and Y. Contribution margin per unit is as follows: Product X Product Y Sales price $130 $80 Variable

The DOT Company manufactures two products, X and Y. Contribution margin per unit is as follows: Product X Product Y Sales price $130 $80 Variable costs 70 38 Contribution margin $60 $42 Total demand for product X is 16,000 units and for product Y total demand is 8,000 units. Machine hours are a scarce resource; only 42,000 machine hours are available for the year. Product X requires 6 machine hours per unit to manufacture and product Y requires 3 machine hours per unit. How many units of X and Y, respectively should DOT produce?

A. 7,000 and zero

B. 3,000 and 8,000

C. zero and 14,000

D. 16,000 and 8,000

E. none of these

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