Logan Company can sell all of the standard and premier products they can produce, but...
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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 6 standard units per hour or 4 premier units per hour, and it has 36,000 production hours available. Contribution margin per unit is $24 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company?
36,000 standard units and 120,000 premier units.
0 standard units and 144,000 premier units.
120,000 standard units and 64,000 premier units.
180,000 standard units and 24,000 premier units.
216,000 standard units and 0 premier units.
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