Question

Jones Manufacturing has 100,000 labor hours available for producing Product X and Y. Consider the following information:

Use the following information for the next 3 questions. Jones Manufacturing has 100,000 labor hours available for producing P

21.How many units of Product X should Jones produce?
22.How many units of Product Y should Jones produce?
23.What is the contribution margin the company expects to generate?

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Answer #1

Contribution margin per labor hour

X Y
Contribution margin per unit 20 15
Labor hour per unit 10 5
Contribution margin per hour 2 3
Rank II I

a) 5000 Units of product X

b) 10000 Units of product Y

c) Total Contribution margin = 5000*20+10000*15 = 250000

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