0 Fit Time produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Fittime could use all of its available machine hours producing either model. The two models are processed through the same production department Click the icon to view the data) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product) Prepare the product mix analysis FitTime Product Mix Analysis Deluxe Regular Fittime should produce the product with the contribution margin per unit of the constraint, times as much overhead cost is allocated to each Deluxe model as to each Regular model. In other words, it takes times as many machine hours to produce a Deluxe model For each unit of the Deluxe model produced (contributing $ per machine hour to operating income). Fittime can produce units of the Regular model (contributing per machine hour to operating Income) Therefore, FitTime should produce Fime produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Fittime could use all of its machine hours producing either model. The two models are processed through the same production department (Chick the icon to view the data) What product mix will maximize operating Income? (Hint: Une the alocation of food manufacturing owerhead to determine the proportion of machine how each product) Prepare the product mix analysis. Fit Time Product Mix Analysis Deluxe Regular er unit of the constraint Contribution margin for equivalent number of direct labor hours Contribution margin for equivalent number of machine hours Contribution margin perunt Fred costs per unit Sale price per unit Unts produced with equivalent number of direct Inbor hours Units produced with equivalent number of machine hours Variable costs per unit Part of the Demo produce units of the Red Fine should produce each Regular model in other words, it takes Times as many machine Fittime can Therefore Per Ult Deluxe Regular 1030$ 500 $ 320 90 120 130 Sale price Less expenses Direct materials Director Variable manufacturing overhead Fixed manufacturing overhead Variable operating per Total expenses 176 30 76 107 $ $ 7691 2610 59 Operating income Allocated on the basis of machine hours Print Done Choorn en wertheless contoh A Peppy Quadcopters plans to sell a standard quadcopter (toy drone) for $60 and a deluxe quadcopter for $90. Peppy purchases the standard the deluxe quadcopter for $65. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's me are $15,400. How many of each type of quadcopter must Peppy sell monthly to breakeven? To earn $11,000? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach (Abbrevia average and CM contribution margin) Breakeven sales in its Ne contribution margin per unit. First identify the formula labels, the complete the calculations step by step Contribution margin ratio Fixed expenses Standard Deluxe Total Operating income Units sold Variable expenses Weighed avg: CM per unit Weighted average contribution margin per unit How many of each type of quadcopter must Peppy sell monthly to breakeven? Peggy must sel standard quadcopters and deluxe quadcopters to breakeven How many of each type of quadcopter must Peppy sell monthly to earn $11,0007 To reach the target operating income, Peppy must sell standard quadcopters and Geluwe quadcopters Choose First identify the formula to compute the sales in units at various levels of operating income using the contribution margin ap average, and CM - contribution margin.) Breakewe Next compute the weighted average contribution margin per unit. First identify the formula labels, then complete the calculat Standard Deluxe Total Contribution margin Contribution margin per unit Sale price per unit Sales mix in units Variable expense per unit How many of each type of quadcopter must Peppy sell monthly to breakeven? Peppy must sell standard quadcopters and deluxe quadcopters to breakeven. How many of each type of quadcopter must Peppy sell monthly to earn $11,000? To reach the target operating income, Peppy must sell standard quadcopters and deluxe que