Question 4: Choosing the product mix when capacity is in short supply. You have three product...

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Question 4: Choosing the product mix when capacity is in short supply. You have three product lines: Basic, Premium, and Supreme. You have limited capacity of 300 machine hours. You face excess demand for all three products (assume unlimited demand for simplicity). Premium Price per unit Unit variable cost Machine hours per unit Basic $4,800 $1,600 1 Premium $ Supreme = $ Compute the CM per unit of capacity (i.e, per machine-hour) for each product: per hour Basic = $ per hour per hour Which product(s) should you make? O Basic only $11,200 $3,200 2 O Make all three products to take advantage of the high demand O Premium only O Supreme only Supreme $16,000 $4,800 4 Premium = units units Supreme = Hint if you get stuck: You have 300 machine hours. How many units of each product should you make? (enter 0 for products that you do not want to make) Basic = units Question 4: Choosing the product mix when capacity is in short supply. You have three product lines: Basic, Premium, and Supreme. You have limited capacity of 300 machine hours. You face excess demand for all three products (assume unlimited demand for simplicity). Premium Price per unit Unit variable cost Machine hours per unit Basic $4,800 $1,600 1 Premium $ Supreme = $ Compute the CM per unit of capacity (i.e, per machine-hour) for each product: per hour Basic = $ per hour per hour Which product(s) should you make? O Basic only $11,200 $3,200 2 O Make all three products to take advantage of the high demand O Premium only O Supreme only Supreme $16,000 $4,800 4 Premium = units units Supreme = Hint if you get stuck: You have 300 machine hours. How many units of each product should you make? (enter 0 for products that you do not want to make) Basic = units

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