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

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) Price per unit Unit variable cost Machine hours per unit Basic $2,400 $800 Premium $5,600 $1,600 Supreme $8,000 $2,400 Compute the CM per unit of capacity (i.e, per machine-hour) for each product: Basic $ Premium $ Supreme s per hour per hour per hour Which product(s) should you make? Basic only O Premium only O Supreme only O Make all three products to take advantage of the high demand How many units of each product should you make? (enter 0 for products that you do not want to make) Basic- Premium Supreme- units units units Hint if you get stuck: You have 300 machine hours

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