Logan Company Can Sell All of the Standard and Premier

question 93

Multiple Choice

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?

• A)0 standard units and 144,000 premier units.
• B)180,000 standard units and 24,000 premier units.
• C)216,000 standard units and 0 premier units.
• D)36,000 standard units and 120,000 premier units.
• E)120,000 standard units and 64,000 premier units.

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Definitions:

Hydroelectricity

The generation of electricity using the flow of water through turbines in dams.

Coal

Coal is a combustible black or brownish-black sedimentary rock used primarily as an energy source or in industrial processes.

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Structures designed to release industrial gases at a high elevation, reducing ground-level pollution.

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Regions characterized by high human population density and vast human-built features in comparison to areas surrounding it.