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How many units of product x should it produce

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Question - Kingston Manufacturing has 27,000 labor hours available for producing X and Y. Consider the following information:

 

Product X

Product Y

Required 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

$2.00

$1.50

Required - If Kingston follows proper managerial accounting practices, how many units of Product X should it produce?

Reference no: EM133107355

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