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 220,320 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
A. 0 Standard units and 73,440 Premier units.
B. 73,440 Standard units and 24,480 Premier units.
C. 110,160 Standard units and 0 Premier units.
D. 18,360 Standard units and 61,200 Premier units.
E. 61,200 Standard units and 32,640 Premier units.
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