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Logan Company Can Sell All of the Standard and Premier

Question 118

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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