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Figure 25-1
Hassel Company Manufactures Two Different Products, X and Y

Question 8

Multiple Choice

Figure 25-1
Hassel Company manufactures two different products, X and Y. The company has 100 kgs of materials and 300 direct labour hours available for production.
The time requirements and contribution margins per unit are as follows:  Product X  Product Y  Contribution margin per unit £4£5 Materials per unit (lbs.)  12 Direct labour hours per unit 42\begin{array}{lrr}&\text { Product X }&\text { Product Y }\\\text { Contribution margin per unit } & £ 4 & £ 5 \\\text { Materials per unit (lbs.) } & 1 & 2 \\\text { Direct labour hours per unit } & 4 & 2\end{array}
-Refer to Figure 25-1. What is the objective function for maximizing profits?


A) Minimize £4X + £5Y
B) Maximize £4X + £5Y
C) Maximize £1X + £2Y
D) Maximize £4X + £2Y

Correct Answer:

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