Answer:
Standard production is more profitable.
Most profitable sales mix = 264,000 standard units (and 0 premier unit)
Explanation:
As per the data given in the question,
For standard product :
Contribution margin for every hour = 8 × $22
= $176
For premier product :
Contribution margin for every hour = 5 × $30
= $150
As, contribution margin of standard product is greater than premier product, Therefore, Logan company should employ all the production hours to produce only standard product to get the maximum profit.
Therefore, Most profitable sales mix = 33,000 hours × 8 unit per hour
= 264,000 standard units (and 0 premier unit)
"Stuck in the middle" firm.
These types of companies do not differentiate themselves or offer better prices, so they are stuck in the middle and at a competitive disadvantage in the marketplace.
Answer:
False
Explanation:
The reason is that the net difference depends upon the efficiency of the company and doesn't always gives a smaller number of score. There numerous examples like Nestle which integrated its finance departments and other departments which generated greater value for the company in the same year above the budget set. So when the company starts control costs with its greater efficiency achievements the favourable variance starts growing and vice versa.
