What is the most profitable sales mix for Boujee Bison

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...
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Boujee Bison Company produces two products, Basic and Boujee. Boujee Bison can sell all of the Basic and Boujee products it can produce, but it has
limited production capacity. Machine hours per unit for Basic is 720,000 hour and for Boujee is 460,000.0 hours. The company has 122,500 machine
hours available. Contribution margin per unit is $960,000.00 for Basic and $1.00 for Boujee. What is the most profitable sales mix for Boujee Bison
Company?
Multiple Choice
306,250 Basic units and 653,750 Boujee units.
55 Basic units and 15 Boujee units.
15 Basic units and 25 Boujee units.
20 Basic units and 22 Boujee units.
768,000 Basic units and 384,000 Boujee units.
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Transcribed Image Text:Boujee Bison Company produces two products, Basic and Boujee. Boujee Bison can sell all of the Basic and Boujee products it can produce, but it has limited production capacity. Machine hours per unit for Basic is 720,000 hour and for Boujee is 460,000.0 hours. The company has 122,500 machine hours available. Contribution margin per unit is $960,000.00 for Basic and $1.00 for Boujee. What is the most profitable sales mix for Boujee Bison Company? Multiple Choice 306,250 Basic units and 653,750 Boujee units. 55 Basic units and 15 Boujee units. 15 Basic units and 25 Boujee units. 20 Basic units and 22 Boujee units. 768,000 Basic units and 384,000 Boujee units. < Prev 11 of 18 Next >
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