Figure 25-3
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: $\begin{array}{cc}
&\text { Product A } & \text { Product B } \
\text { Labour hours per unit }&1&2 \
\text { Machine hours per unit }&5&1
\end{array}$
-Refer to Figure 25-3. What is the constraint on labour hours for Tiffany Manufacturing Company?
A)10X + 90Y$\le$200
B)1X + 2Y $\le$400
C)1X + 2Y $\le$200
D)1X + 4Y $\le$ 400

Question

Quizplus · Accepted Answer

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

Figure 25-3 Tiffany Manufacturing Company Produces X and Y with Contribution

Figure 25-3
Tiffany Manufacturing Company Produces X and Y with Contribution