Question
Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 6 standard
Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 6 standard units per hour or 4 premier units per hour, and it has 36,600 production hours available. Contribution margin per unit is $25 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company?
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0 standard units and 146,400 premier units.
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183,000 standard units and 24,400 premier units.
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219,600 standard units and 0 premier units.
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36,600 standard units and 122,000 premier units.
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122,000 standard units and 65,067 premier units.
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