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Tiffany Manufacturing Company Produces X and Y with Contribution Margins

Question 19

Multiple Choice

Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows:
 Product X  Product Y  Labour hours per unit 12 Machine hours per unit 51\begin{array} { l c c } & \text { Product X } & \text { Product Y } \\\text { Labour hours per unit } & 1 & 2 \\\text { Machine hours per unit } & 5 & 1\end{array}
-Refer to the figure.What is the objective function to maximize profits for Tiffany Manufacturing Company?


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

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