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This company sells the below 3 products. The suits come with 2 pairs of pants. Cost DM DL VOH TVC suits 18 40 ? ? pants 6 10 ? ? sports coats 8 19 VOH Rate: 200%/ DLC ? ? Price CMu 235 ? 60 ? 135 ? Current sales mix: Units 1000 5000 2000 Capacity/ MHu: 30,000 Utilization/ MH Excess capacity/ MH 1. With the current information, which product would you expect to be the most profitable to product? List the products in order of descending profitability. Show your calculations. 2. The company has a constraining resource machine time. The company has a total of 30,000 machine hours available without working overtime. The products require the following amounts of machine hours to complete on average. The quantities currently produced and sold are also included: Suits pants sports coats capacity/ MH MHu 9 2 5 30,000 Current sales mix 1000 5000 2000 utilization/MH ? Excess capacity/MH ? with the information from 1 and 2, what would be the best use (most profitable of any excess capacity? Show your calculations and compare alternatives. 3. The company has just received a special order 200 sports coats. What is the minimum price that the company should be willing to charge under the current circumstances (question 2)? 4. The company has just received a special order for 300 sports coats at a price of 120 each. Given the circumstances illustrated in question 2, would be better for the company to use current capacity or overtime (paid at 1.5 times regular pay) to complete the order. Show calculations for each alternative what important economic concept must be considered for the use of current capacity? 5. This problem has ignored fixed costs. Why