Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaster could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models is as follows:

* allocated on the basis of machine hours

Requirements
1. What is the constraint?
2. Which model should Lifemaster produce?
3. If Lifemaster should produce both models, compute the mix that will maximize operatingincome.

Transcribed Image Text:

Per Unit Deluxe Reaular $ 1,020 560 Sale Price Costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Operating Expenses 188 138 65 477 5 119 83 Total Costs 901 Operating Income