Question 4: Choosing the product mix when capacity is in short supply MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER You have three product lines: Basic, Premium, and Supreme. You have limited capacity of 300 machine hours ou fare scess demand for all three products (assume uimited demand for Price per unit Unit variable cost Basic $4,800 $1,600) 1 Premium $11,200 $3,200 2 Supreme $16,000 $4,800 4 Machine hours per unit Compute the CM per unit of capacity (l.e, per machine-hour) for each product Basic $ Premium $ Supreme per hour per hour per hour Which product(s) should you make? O Basic only O Premium only O Supreme 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. assignment Progress