Question: Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 731,000 units of Basic, 548,000 units of Classic, and 128,000

Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 731,000 units of Basic, 548,000 units of Classic, and 128,000 units of Deluxe. Bricktan has limited production capacity of 1,092,000 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

  • 73,100 Basic, 548,000 Classic and 291,200 Deluxe.

  • 182,000 Basic, 128,000 Classic and 291,200 Deluxe.

  • 420,000 Basic, 291,200 Classic and 128,000 Deluxe.

  • 640,000 Basic, 0 Classic and 128,000 Deluxe.

  • 87,000 Basic, 548,000 Classic and 128,000 Deluxe.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!