Farris Company reported the following information for its two products: Product X Product YSelling price per unit$25 $35 Variable cost per unit 15 20 Due to labor constraints, demand for each of the products is greater than its supply. Product X requires one hour of labor to produce and product Y requires three hours of labor to produce. Which of the following statements is true?
A. Product Y should be produced and sold because it provided a higher contribution margin per unit than Product X.
B. Product X should be produced and sold because it has a lower cost than Product Y.
C. Product X should be produced and sold because it provides a higher contribution margin per labor hour than Product Y.
D. Product Y should be produced and sold because it provides more revenue than Product X.
Answer: C
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