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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 5 premier units per hour, and it has 36,000 production hours available. Contribution margin per unit is $20 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company? rev: 12_18_2020_QC_CS-244914   Multiple Choice   0 standard units and 180,000 premier units.   180,000 standard units and 30,000 premier units.   216,000 standard units and 0 premier units.   36,000 standard units and 150,000 premier units.   150,000 standard units and 55,000 premier units.

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 5 premier units per hour, and it has 36,000 production hours available. Contribution margin per unit is $20 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company? rev: 12_18_2020_QC_CS-244914   Multiple Choice   0 standard units and 180,000 premier units.   180,000 standard units and 30,000 premier units.   216,000 standard units and 0 premier units.   36,000 standard units and 150,000 premier units.   150,000 standard units and 55,000 premier units.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 5 premier units per hour, and it has 36,000 production hours available. Contribution margin per unit is $20 for the standard product and $30 for the premier product. What is the most profitable sales mix for Logan Company?

rev: 12_18_2020_QC_CS-244914

 

Multiple Choice
  •  

    0 standard units and 180,000 premier units.

  •  

    180,000 standard units and 30,000 premier units.

  •  

    216,000 standard units and 0 premier units.

  •  

    36,000 standard units and 150,000 premier units.

  •  

    150,000 standard units and 55,000 premier units.

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