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The Hingis Corporation manufactures two products: X and Y. Contribution margin per unit is determined as follows:
Product X Product Y
Revenue P 130 P80
Variable costs 70 38
Contribution margin P 60 P42
Total demand for X is 16,000 units and for Y is 8,000 units. Machine hours is a scarce resource. 42,000 machine hours are available during the year. Product X requires 6 machine hours per unit while product Y requires 3 machine hours per unit.
Problem 1: How many units of X and Y should Hingis Corporation produce?
A. B. C. D.
Product X 16,000 8,000 7,000 3,000
Product Y - 0 - 4,000 - 0 - 8,000
Prepare the statement of cash flow
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