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, how many units of Product X should it produce?
A. 8,000.
B. 1,500.
C. 4,500.
D. 5,000.
E. 6,000.
Answer: E
Business
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