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

You have three product lines: Basic, Premium, and Supreme. You have limited

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 Basic $3,600 $1,200 1 Premium $8,400 $2,400 2 Supreme $12,000 $3,600 4 Machine hours per unit Compute the CM per unit of capacity (i.e, per machine-hour) for each product: Basic = $2400 per hour Premium = $0 per hour Supreme $ 2100 = per hour Which product(s) should you make? O Make all three products to take advantage of the high demand Premium only Supreme only Basic only 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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