Score: 0 290 Comment of029 2.24/3.34 points Previous Answers Notes Ask Your T Qu
ID: 2423568 • Letter: S
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Score: 0 290 Comment of029 2.24/3.34 points Previous Answers Notes Ask Your T Question 3. (choosing the optimal product mix when capacity is in short supoly) 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 difforent levels of protection The demand and cost information is as follows ice/unit nit VC achine Fhours per uniti Your capacity is 900 machine hours Required (a) Compute the CM per unit of capacity (machine-hour) for each produdt Basic-SEOperror Premium- $ 3900 Supreme = $ 225 per hour per hour (b) Based on your answer ih (a), how much of esdh product should you produce? Premium Supreme - units units units (if your answer for some product is zero units, explicity enter 0 above)Explanation / Answer
Details Basic Premium Supreme Demand Units 6,000.00 3,000.00 1,500.00 Price/Unit 1,800.00 3,000.00 6,000.00 Unit VC 600.00 900.00 1,800.00 Machine hour per unit 1.00 1.50 4.00 Contribution margin per unit 1,200.00 2,100.00 4,200.00 Contribution Margin per Machine hour 1,200.00 1,400.00 1,050.00 Available machine Hours =900 As contribution margin per m/c hr for Premium is highest, the available machine hours should be used for production of premium. Premium prodcution possible in 900 machine hrs = 600 units Product type Basic Premium Supreme So Prodcution volumes wil be - 600.00 -
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