Please Explain. Thank you!!! Bricktan Incorporated makes three products, Basic, Classic, and Deluxe....
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Please Explain. Thank you!!!
Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 715,000 units of Basic, 420,000 units of Classic, and 120,000 units of Deluxe. Bricktan has limited production capacity of 900,000 machine hours. Machine hours per unit are as follows: Basic, 1 hour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated?
Multiple Choice
71,500 Basic, 420,000 Classic and 240,000 Deluxe.
150,000 Basic, 120,000 Classic and 240,000 Deluxe.
300,000 Basic, 240,000 Classic and 120,000 Deluxe.
600,000 Basic, 0 Classic and 120,000 Deluxe.
75,000 Basic, 420,000 Classic and 120,000 Deluxe.
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