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4: Choosing the product mix when.capacity is in short supply You have three product lines: Basic, Premium, and Supreme. You have Imited capacity of 300

4: Choosing the product mix when.capacity is in short supply You have three product lines: Basic, Premium, and Supreme. You have Imited capacity of 300 machine hours. You face excess demand for all three products (ument for simplicity) Price per unit Unit variable cost Machine hours per unit Basic $2,400 $800 1 Premium Supreme $5,000 $8,000 $1,600 $2,400 2 4 Compute the CM per unit of capacity (ie, per machine-hour) for each product Basic Premium Supreme $ per hour per hour per hour Which product(s) should you make? Supreme only O Premium only Basic 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. 600PM

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