Question
Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited
Logan Company produces two products, Standard and Premier. Logan can sell all of the Standard and Premier products it can produce, but it has limited production capacity. Machine hours per unit for Standard is 2 hour and for Premier is 3.0 hours. The company has 219,780 machine hours available. Contribution margin per unit is $24.00 for Standard and $30.00 for Premier. What is the most profitable sales mix for Logan Company?
Multiple Choice
0 Standard units and 73,260 Premier units.
73,260 Standard units and 24,420 Premier units.
109,890 Standard units and 0 Premier units.
18,315 Standard units and 61,050 Premier units.
61,050 Standard units and 32,560 Premier units.
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