Knoxville Manufacturing Company Produces X and Y with Contribution Margins

question 91

Multiple Choice

Knoxville Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labor hours and 400 machine hours are available for production. Time requirements to produce one unit of X and Y are as follows: $\begin{array}{lll}&\text { Froduct } \mathrm{X}& \text { Product } Y\\\text { Labor hours per unit } & 1 & 2 \\\text { Machine hours per unit } & 5 & 1\end{array}$ What is the constraint on machine hours for Knoxville Manufacturing Company?

• A)10X + 90Y ? 200
• B)1X + 2Y ? 400
• C)5X + 1Y ? 400
• D)1X + 2Y ? 200

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Definitions:

Linear Programming

Linear Programming is a mathematical method used for achieving the best outcome in a model with linear relationships, commonly applied in optimization and resource allocation.

Simplex Method

An algorithm for solving linear programming problems of all sizes.

Corner-Point Method

A method for solving graphical linear programming problems.

Mathematical Expression

A combination of numbers, operations symbols, and sometimes variables that represents a mathematical relationship, action, or procedure.