Smith Manufacturing has 27,000 labour hours available for producing X and Y. Consider the following information:

\begin{array} { | l | c | c | c | } \hline & \text { Product X } & & \text { Product Y } \\\hline \text { Required labour time per unit (hours) } & 2 && 3 \\\hline \text { Maximum demand (units) } & 6,000 && 8.000 \\\hline \text { Contribution margin per unit } & \$ 5.00& & \$ 6.00 \\\hline \text { Contribution margin per labour hour } & \$ 2.50 && \$ 2.00 \\\hline\end{array}

If Smith follows proper managerial accounting practices, which of the following production schedules should the company set?

\begin{array} { | l | r | r | r | } \hline & \text { Product X } & & \text { Product Y } \\\hline 1 & 0 \text { units } && 8,000 \text { units } \\\hline 2 & 1,500 \text { units } & & 8,000 \text { units } \\\hline 3 & 6,000 \text { units } & &0 \text { units } \\\hline 4 & 6.000 \text { units } && 5.000 \text { units } \\\hline 5 & 6.000 \text { units } && 8.000 \text { units } \\\hline\end{array}

A)1
B)2
C)3
D)4
E)5

Flower Company, Which Is Operating at Capacity, Desires to Add

Multiple Choice