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 labor hours for Knoxville Manufacturing Company?
A)1X + 2Y ? 200
B)10X + 90Y ? 200
C)1X + 2Y ? 400
D)1X + 4Y ? 400

Question

Quizplus · Accepted Answer

The constraint on labor hours is determined by the time requirements for labor to produce one unit of each product. For product X, it takes 1 labor hour per unit, and for product Y, it takes 2 labor hours per unit. Given that only 200 labor hours are available, the constraint is represented by the equation 1X + 2Y ≤ 200.

Knoxville Manufacturing Company Produces X and Y with Contribution Margins