JK Company produces two products, Plush and Supreme. JK Company can sell all of the...
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Accounting
JK Company produces two products, Plush and Supreme. JK Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are 0.25 hours for Plush and 0.50 hours for Supreme, and the company has 3,600 machine hours available. Contribution margin per unit is $230 for Plush and $316 for Supreme. What is the most profitable sales mix for JK Company?
Multiple Choice
0 Plush units and 7,200 Supreme units.
7,200 Plush units and 7,200 Supreme units.
14,400 Plush units and 0 Supreme units.
14,400 Plush units and 7,200 Supreme units.
7,200 Plush units and 3,600 Supreme units.
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