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 37,800 production hours available. Contribution margin per unit is $22 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company?
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126,000 standard units and 117,600 premier units.
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189,000 standard units and 25,200 premier units.
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0 standard units and 189,000 premier units.
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302,400 standard units and 0 premier units.
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