Answer:
234,000 standard units
Explanation:
Standard unit Premier unit
Contribution margin per unit $25 $21
Production hour per unit 1/6 1/5
Contribution margin per production hour $150 $105
Contribution margin per production hour is higher for standard units, hence Logan company should produce standard units.
Total production hours available = 39,000
Production per hour of standard unit = 6
Maximum production of standard units = Total production hours available * Production per hour of standard unit
Maximum production of standard units = 39,000 * 6
Maximum production of standard units = 234,000
