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I assume that you are referring to the question Perrin in the Revision Kit?
At present they are using all their labour making Product Y and are generating a contribution of $320/4 = $80 per hour.
If they produce Product X for the other division then every hour used to make Product X is taking hours away from Product Y and is therefore losing them contribution $80 per hour.
Since each unit of X needs 6 hours of labour, they are losing contribution of 6 x $80 = $480 for every unit of X that they make.
This example is similar to the last of the examples that I work through in my free lectures on transfer pricing!
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