Knoxville Manufacturing Company Produces X and Y with Contribution Margins

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 labor hours for Knoxville Manufacturing Company?

A) 1X + 2Y ? 200
B) 10X + 90Y ? 200
C) 1X + 2Y ? 400
D) 1X + 4Y ? 400