Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 728,000 units of basic, 524,000 units of classic, and 250,000 units of deluxe. Bricktan has a limited production capacity of 142,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the most profitable sales mix for Bricktan Inc.? a) 72,800 basic, 524,000 classic and 500,000 deluxe.
b) 280,000 basic, 250,000 classic and 500,000 deluxe.
c) 274,000 basic, 500,000 classic and 250,000 deluxe.
d) 1,120,000 basic, 0 classic and 250,000 deluxe.
e) 140,000 basic, 524,000 classic and 250,000 deluxe.

For most profitable sales mix    Basic        Classic                Deluxe    

Units produced for

most profitable sales mix         72,800               524,000       250,000

Explanation:

The computation is shown below;

Particulars                                     Basic              Classic                Deluxe  

Contribution margin per unit       $15                    $25                  $55

Production units per hour            10                       8                     4

Contribution margin per

production hour                           $150                   $200             $220

Order                                              III                           II                    I  

Particulars                                 Basic                     Classic       Deluxe    Total

Maximum number of units

to be sold                                  728,000                 524,000    250,000  1,502,000

Hours needed to generate

the maximum units                  72,800                     65,500   62,500 200,800

For most profitable sales mix    Basic        Classic    Deluxe         Total

Hours dedicated

to the production

of each product                     7,280                        65,500      62,500  135,280

                                      (728,000 × 1 ÷ 10)    (524,000 × 1 ÷ 8)  (250,000 × 1 ÷ 4)

Units produced for

most profitable sales mix         72,800               524,000       250,000

This is the correct answer but the same is not provided in the given options