Question
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started