Question
Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 8 standard
Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 8 standard units per hour or 5 premier units per hour, and it has 45,900 production hours available. Contribution margin per unit is $26 for the standard product and $32 for the premier product. What is the most profitable sales mix for Logan Company?
Multiple Choice
0 standard units and 229,500 premier units.
229,500 standard units and 30,600 premier units.
367,200 standard units and 0 premier units.
45,900 standard units and 153,000 premier units.
153,000 standard units and 142,800 premier units.
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