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How many units of x and y should hingis corporation produce

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Reference no: EM132738980

The Hingis Corporation manufactures two products: X and Y. Contribution margin per unit is determined as follows:

                               Product X                     Product Y

Revenue                  P 130                    P80

Variable costs              70                  38

Contribution margin        P 60            P42

Total demand for X is 16,000 units and for Y is 8,000 units. Machine hours is a scarce resource. 42,000 machine hours are available during the year. Product X requires 6 machine hours per unit while product Y requires 3 machine hours per unit.

Problem 1: How many units of X and Y should Hingis Corporation produce?

                     A.              B.              C.            D.

Product X 16,000        8,000      7,000    3,000

Product Y -  0 -           4,000 -        0 -  8,000

Reference no: EM132738980

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