You produce armor kits for military vehicles. 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 3 versions of the product, Basic, Premium and Supreme, which offer different levels of protection. The demand and cost information is as follows:BasicPremiumSupremeDemand (units)6,0003,0001,500Price/unit$1,200$2,000$4,000Unit VC$400$600$1,200Machine hours per unit11.54Your capacity is900machine hours.Required:(a) Compute the CM per unit of capacity (machine-hour) for each product: Basic = $per hour Premium = $per hour Supreme = $per hour(b) Based on your answer in (a), how much of each product should you produce? Basic =units Premium =units Supreme =units
You produce armor kits for military vehicles. 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 3 versions of the product, Basic, Premium and Supreme, which offer different levels of protection. The demand and cost information is as follows:BasicPremiumSupremeDemand (units)6,0003,0001,500Price/unit$1,200$2,000$4,000Unit VC$400$600$1,200Machine hours per unit11.54Your capacity is900machine hours.Required:(a) Compute the CM per unit of capacity (machine-hour) for each product: Basic = $per hour Premium = $per hour Supreme = $per hour(b) Based on your answer in (a), how much of each product should you produce? Basic =units Premium =units Supreme =units
You produce armor kits for military vehicles. 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 3 versions of the product, Basic, Premium and Supreme, which offer different levels of protection. The demand and cost information is as follows:BasicPremiumSupremeDemand (units)6,0003,0001,500Price/unit$1,200$2,000$4,000Unit VC$400$600$1,200Machine hours per unit11.54Your capacity is900machine hours.Required:(a) Compute the CM per unit of capacity (machine-hour) for each product: Basic = $per hour Premium = $per hour Supreme = $per hour(b) Based on your answer in (a), how much of each product should you produce? Basic =units Premium =units Supreme =units
You produce armor kits for military vehicles. 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 3 versions of the product, Basic, Premium and Supreme, which offer different levels of protection. The demand and cost information is as follows:BasicPremiumSupremeDemand (units)6,0003,0001,500Price/unit$1,200$2,000$4,000Unit VC$400$600$1,200Machine hours per unit11.54Your capacity is900machine hours.Required:(a) Compute the CM per unit of capacity (machine-hour) for each product: Basic = $per hour Premium = $per hour Supreme = $per hour(b) Based on your answer in (a), how much of each product should you produce? Basic =units Premium =units Supreme =units
