Solution-Compute the cm per unit of capacity for each

Compute the cm per unit of capacity for each product

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Reference no: EM132051357

Question - 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:

	Basic	Premium	Supreme
Demand (units)	6,000	3,000	1,500
Price/unit	$1,200	$2,000	$4,000
Unit VC	$400	$600	$1,200
Machine hours per unit	1	1.5	4

Required:

(a) Compute the CM per unit of capacity (machine-hour) for each product?

(b) Based on your answer in (a), how much of each product should you produce?

Reference no: EM132051357

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Compute the cm per unit of capacity for each product

Reference no: EM132051357

Reference no: EM132051357

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