Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows:
$$\begin{array} { l c c }
& \text { Product X } & \text { Product Y } \
\text { Labour hours per unit } & 1 & 2 \
\text { Machine hours per unit } & 5 & 1
\end{array}$$
-Refer to the figure.What is the constraint on machine hours for Tiffany Manufacturing Company?
A)1X + 2Y $\leq $200
B)1X + 2Y$\leq $ 400
C)5X + 1Y $\leq $ 400
D)10X + 90Y$\leq $ 200

Question

Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows:
$$\begin{array} { l c c } 
& \text { Product X } & \text { Product Y } \
\text { Labour hours per unit }  & 1 & 2 \
\text { Machine hours per unit } & 5 & 1
\end{array}$$
-Refer to the figure.What is the constraint on machine hours for Tiffany Manufacturing Company?
A)1X + 2Y $\leq $200
B)1X + 2Y$\leq $ 400
C)5X + 1Y $\leq $ 400
D)10X + 90Y$\leq $ 200

Quizplus · Accepted Answer

The constraint on machine hours is determined by the time requirements for machine hours per unit of products X and Y. Product X requires 5 machine hours per unit, and Product Y requires 1 machine hour per unit. With a total of 400 machine hours available, the constraint is 5X + 1Y ≤ 400.

Tiffany Manufacturing Company Produces X and Y with Contribution Margins