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 4 premier units per hour, and it has 36,600 production hours available. Contribution margin per unit is $20 for the standard product and $23 for the premier product. What is the most profitable sales mix for Logan Company?
Multiple Choice
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0 standard units and 146,400 premier units.
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105,225 standard units and 18,300 premier units.
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292,800 standard units and 0 premier units.
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36,600 standard units and 52,613 premier units.
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52,613 standard units and 120,094 premier units.
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