Farris Company Reported the Following Information for Its Two Products

Multiple Choice

Farris Company reported the following information for its two products: $$\begin{array} { l c c } & \text { Product X } & \text { Product } Y \\\text { Selling price per unit } & \$ 2 5 &\$3 5\\\text { Variable cost per unit } & 15 & 20\end{array}$$ Due to labor constraints,demand for each of the products is greater than its supply.Product X requires one hour of labor to produce and product Y requires three hours of labor to produce.Which of the following statements is true?

A) Product X should be produced and sold because it has a lower cost than Product Y.
B) Product X should be produced and sold because it provides a higher contribution margin per labor hour than Product Y.
C) Product Y should be produced and sold because it provided a higher contribution margin per unit than Product X.
D) Product Y should be produced and sold because it provides more revenue than Product X.