Question 4: Choosing the product mix when capacity is in short supply You have three product lines: Basic, Premium, and Supreme. You have limited capacity of 300 machine hours. You face excess demand for all three products (assume unlimited demand for simplicity). Basic Premium Supreme Price per unit $3,600 $8,400 $12,000 Unit variable cost $1,200 $2,400 $3,600 Machine hours per unit 1 2 4 Compute the CM per unit of capacity (i.e, per machine-hour) for each product: Basic = $ Premium = $ Supreme = $ per hour per hour per hour Which product(s) should you make? Make all three products to take advantage of the high demand O Premium only O Supreme only Basic only 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.