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Question 2. (choosing the optimal product mix when capacity is in short supply) You produce armor Kits for military vehides. Due to a recent expansion

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Question 2. (choosing the optimal product mix when capacity is in short supply) You produce armor Kits for military vehides. Due to a recent expansion of the war on terror to an unnamed new country, the demand for your products is booming, and you do not have enough capacity to fully fill the demand. You offer versions of the product, Basic, Premium and Supreme, which offer different levels of protection. The demand and cost information is as follows: Basic Premium Supreme Demand (units) 4000 2,000 1,000 Price/unit 51,200 $2,000 $4.000 Unit VC $400 $600 $1,200 Machine hours per unit 1 1 5 Your capacity is 600 machine hours Required: (a) Compute the CM per unit of capacity (madine hour) for each product Basics per hour Premium per hour Supreme per hour (b) Based on your anwer in al how much of each product should you produce Basic Premium units Supreme units (if your answer for some productio ns, explicitly enter above)

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