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0 15 p 2. the mix when capacity is in short supply) armor kits for military vehi

ID: 2524174 • Letter: 0

Question

0 15 p 2. the mix when capacity is in short supply) 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 not have enough capacity to fully fill the demand. You offer 3 versions of the product, Basic, Premium and Su cost information is as follows Supreme, which offer different levels of protection. The demand and 200 200 000 (a) Compute the CM per unit of capacity (machine-hour) for each prfpduct: Basic $ per hour Supreme-s per hour (b) Based on your answer in (a), how much of each product should you produce? Basic- Premium Supreme (if your answer for some product is zero units, explicitly enter 0 above) units units

Explanation / Answer

a Basic Premium Supreme Price/unit 1200 2000 4000 Unit VC 400 600 1200 Contribution margin per unit 800 1400 2800 Machine hours per unit 1 1.5 4 Contribution margin per machine hour 800 933.33 700 b Basic Premium Supreme Preference in production 2 1 3 Demand in units 6000 3000 1500 Hours required to meet demand 6000 4500 6000 Machine hours allocated 0 900 0 Units to be produced 0 600 0