Kingston Manufacturing has 28,600 labor hours available for producing X and Y. Consider the following information: Product
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Kingston Manufacturing has 28,600 labor hours available for producing X and Y. Consider the following information:
Product X | Product Y | ||||||
Required labor time per unit (hours) | 3 | 4 | |||||
Maximum demand (units) | 5,000 | 7,000 | |||||
Contribution margin per unit | $ | 4 | $ | 5 | |||
Contribution margin per labor hour | $ | 2.50 | $ | 2.00 | |||
If Kingston follows proper managerial accounting practices, how many units of Product Y should it produce?
Related Book For
Managerial Decision Modeling With Spreadsheets
ISBN: 9780136115830
3rd Edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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