Logan Company Can Sell All of the Standard and Premier

question 105

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 total contribution margin if Logan chooses the most profitable sales mix?

• A)$7,280,000.
• B)$8,800,000.
• C)$4,960,000.
• D)$5,184,000.
• E)$6,704,000.

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Definitions:

Piercing Cry

A very loud and high-pitched scream or shout, often indicating distress or alarm.

REM Deprivation

The condition of being deprived of Rapid Eye Movement sleep, a stage of sleep associated with dreaming, which can lead to various psychological and physiological effects.

REM Sleep

A phase of sleep characterized by rapid eye movements and is associated with dreaming.

Incorporate

To take in or include something as part or element of a larger thing.