Kingston Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information: Product X Product YRequired labor time per unit (hours) 2 3 Maximum demand (units) 6,000 8,000 Contribution margin per unit$5 $6 Contribution margin per labor hour$2.50 $2 If Kingston follows proper managerial accounting practices, which of the following production schedules should the company set? Product XProduct YA.0 units8,000 unitsB.1,500 units8,000 unitsC.6,000 units0 unitsD.6,000 units5,000 unitsE.6,000 units8,000 units
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: D
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