Figure 25-1
Hassel Company Manufactures Two Different Products, X and Y

question 13

Multiple Choice

Figure 25-1
Hassel Company manufactures two different products, X and Y. The company has 100 kgs of materials and 300 direct labour hours available for production.
The time requirements and contribution margins per unit are as follows: $\begin{array}{lrr}&\text { Product X }&\text { Product Y }\\\text { Contribution margin per unit } & £ 4 & £ 5 \\\text { Materials per unit (lbs.) } & 1 & 2 \\\text { Direct labour hours per unit } & 4 & 2\end{array}$
-Refer to Figure 25-1. What is the objective function for maximizing profits?

• A)Minimize £4X + £5Y
• B)Maximize £4X + £5Y
• C)Maximize £1X + £2Y
• D)Maximize £4X + £2Y