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

Question

Quizplus · Accepted Answer

The constraint on machine hours is determined by the machine hours required to produce one unit of each product. For product X, 5 machine hours are needed per unit, and for product Y, 1 machine hour is needed per unit. With a total of 400 machine hours available, the constraint is represented by the equation 5X + 1Y ≤ 400.

Knoxville Manufacturing Company Produces X and Y with Contribution Margins