Question: 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
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).
QuestionT 47 CTIVOSmg mnie pruuUCL TUIX wien capdCILY IS TIT STIUrl 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). Basic Premium Supreme Price per unit $1,800 $4,200 $6,000 Unit variable cost $600 $1,200 $1,800 Machine hours per unit 1 2 4 Compute the CM per unit of capacity (i.e, per machine-hour) for each product: Basic = $ per hour Premium = $ per hour Supreme = $ per hour Which product(s) should you make? Make all three products to take advantage of the high demand O Supreme only Premium only Basic only How many units of each product should you make? (enter o for products that you do not want to make) Basic = units Premium = units Supreme = units Hint if you get stuck: You have 300 machine hours
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