Maximize contribution margin under capacity constraint

Steps:

• Calculate contribution per unit: X = $13 -$11 = $2; Y =$8 - $4 =$4.
• Identify constraints: total production ≤ 10,000 units; max sales X ≤ 11,000, Y ≤ 9,000.
• Prioritize Y due to higher contribution ($4 >$2): produce max 9,000 Y, then 1,000 X to fill capacity.
• Total contribution for this mix: (9,000 × $4) + (1,000 ×$2) = $38,000 (highest possible).

Why B is correct:

• Option B (1,000 X and 9,000 Y) maximizes total contribution by allocating full capacity to the higher-margin product first, per limiting factor analysis.

Why the others are wrong:

• A: Total 19,000 units exceeds 10,000 capacity limit.
• C: Total 19,000 units exceeds capacity; also 10,000 Y exceeds 9,000 sales max.
• D: Total contribution $30,000, lower than B's$38,000 due to under-prioritizing Y.

Final answer: B