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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 4 premier units per hour, and it has 36,600 production hours available. Contribution margin per unit is $20.00 for the standard product and $23.00 for the premier product. What is the total contribution margin if Logan chooses the most profitable sales mix?
A. $9,940,000
B. $7,570,000
C. $8,220,000
D. $5,600,000
E. $5,856,000
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