Knoxville Manufacturing Company Produces X and Y with Contribution Margins

question 44

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 objective function to maximize profits for Knoxville Manufacturing Company?

• A)Minimize 10X + 90Y
• B)Maximize 10X + 90Y
• C)Maximize 1X + 2Y
• D)Minimize 1X + 2Y

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