0 Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: (Click the icon to view the data.) Read the requirements Requirement 1. What is the constraint? Exer Light's constraint is - X Requirement 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to Data Table Exer Light should produce the product with the Now prepare the product mix analysis by starting with the contribution margin per unit. Per Unit Deluxe Deluxe treadmill Regular treadmill Regular 560 Sales Price $ 1,020 S Sale price per unit Costs: 290 Variable costs per unit 100 74 182 Contribution margin per unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead* 246 82 Next, calculate the proportion of machine hours used. 36 108 121 Fixed overhead Total overhead Proportion of machine hours used 71 Variable operating expenses Total costs 839 471 Deluxe Treadmill Regular Treadmill % $ 181 $ 89 Finally, calculate the contribution margin per machine hour. Operating income *allocated on the basis of machine hours Deluxe Regular treadmill treadmill Print Done Units that can be produced each machine hour Contribution margin per machine hour Enter any number in the edit fields and then continue to the next question. Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: (Click the icon to view the data.) Read the requirements Requirement 1. What is the constraint? Exer Light's constraint is Requirement 2. Which m roduce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) direct materials Exer Light should produc labor hours Now prepare the product machine hours vith the contribution margin per unit. Deluxe Regular treadmill treadmill Sale price per unit Variable costs per unit Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead 1 Total overhead = Proportion of machine hours used Deluxe Treadmill % Regular Treadmill % Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmill Units that can be produced each machine hour Contribution margin per machine hour Enter any number in the edit fields and then continue to the next question. Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: E: (Click the icon to view the data.) Read the requirements Requirement 1. What is the constraint? Exer Light's constraint is Requirement 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Exer Light should produce the product with the Now prepare the product mix analysis by startin highest contribution margin per unit highest contribution margin per unit of the constraint highest sales price Sale price per unit lowest cost Variable costs per unit lowest sales price Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead Total overhead Proportion of machine hours used Deluxe Treadmill - % Regular Treadmill % Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmill Units that can be produced each machine hour Contribution margin per machine hour Enter any number in the edit fields and then continue to the next question. Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: 5 Click the icon to view the data.) Read the requirements CAC Ligne Comic Requirement 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Exer Light should produce the product with the Now prepare the product mix analysis by starting with the contribution margin per unit. Deluxe Regular treadmill treadmill Sale price per unit Variable costs per unit Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead Total overhead Proportion of machine hours used % Deluxe Treadmill Regular Treadmill % Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmill Units that can be produced each machine hour Contribution margin per machine hour Requirement 3. If Exer Light should produce both models, compute the mix that will maximize operating income. Exer Light should produce because Enter any number in the edit fields and then continue to the next question. Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: 5 Click the icon to view the data.) Read the requirements LA Lys cono Requirement 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Exer Light should produce the product with the Now prepare the product mix analysis by starting with the contribution margin per unit. Deluxe Regular treadmill treadmill Sale price per unit Variable costs per unit Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead Total overhead Proportion of machine hours used % Deluxe Treadmill Regular Treadmill % Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmill Units that can be produced each machine hou Contribution margin half standard models and half deluxe models per machine hour only the deluxe model only the regular model Requirement 3. If Exer Lig vill maximize operating income Exer Light should produce because Enter any number in the edit fields and then continue to the next question. Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light 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 are as follows: (Click the icon to view the data.) Read the requirements CACT Cymru consum Requirement 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Exer Light should produce the product with the Now prepare the product mix analysis by starting with the contribution margin per unit. Regular Deluxe treadmill treadmill Sale price per unit Variable costs per unit Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead Total overhead Proportion of machine hours used Deluxe Treadmill - % Regular Treadmill % Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmill Units that can be produced each machine hour Contribution margin per machine hour each model contributes an equal amount to operating income for the period this model produces the highest contribution margin per unit this model produces the most contribution margin per machine hour Requirement 3. If Exer Light should produce both models, compute the mix that will Exer Light should produce because Enter any number in the edit fields and then continue to the next