11. You have limited capacity of machine-hours. You face excess demand for all 4 products. D Price Unit VC Machine hours per unit Product A $110 $50 2 Product B $500 $200 Product CL $300 $250 2.5 Product D $1,000 $700 12 Which product should you make? A. Product A B. Product B C. Product C D. Product D E. Make all 4 products to take advantage of the high demand 12. General Mattress (GM) Company sells mattresses at a regular price of $800. The total cost per unit $700, which consists of $200 direct labor per unit, $250 direct materials per unit, $100 fixed overhead per unit, and $150 variable overhead per unit. A hotel chain offered to buy 1,000 mattresses from GM at a discounted price of $650. This is a one-time special offer (a short-term decision), and GM has enough share capacity to accommodate this order. If GM accepts the special order, GM's profit will: A. Increase by $150,000 B. Increase by $50,000 C. Remain the same D. Decrease by $50,000 E. Decrease by $150,000 13. Which of the following are reasonable ways to deal with excess supply? A. Use all available capacity to make the product with the highest CM per unit of capacity B. Increase advertising C. Find special orders at a discounted price D. A and B only E. B and C only