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Logan's, Inc. has the following production and cost data for two of its products, Basic and ...

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Logan's, Inc. has the following production and cost data for two of its products, Basic and ...

Logan's, Inc. has the following production and cost data for two of its products, Basic and Supreme:

Basic

Supreme

Contribution margin per unit	$160	$140
Machine hours needed per unit	4	5

A total of 40,000 hours is available each period for the production of the two products. The demand for both products is strong and Logan is not sure it can fill all orders expected to be received.

Required:

a. Ignoring qualitative issues, for which of the two products should Logan focus on filling
orders first?
b. List three alternatives that Logan should consider in order to produce more units within
the 40,000 hours.

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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