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5A Identify constraint, then determine product mix (Learning Objective 5) TreadFast produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related
5A Identify constraint, then determine product mix (Learning Objective 5) TreadFast produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that TreadFast could use all of its available machine hours produc- ing either model. The two models are processed through the same production department. Per Unit Regular Deluxe 540 1,000 3 Sales price 4 Less expenses 5 Direct materials 6 Direct labor 7 Variable manufacturing overhead 8 Fixed manufacturing overhead 9 Variable operating expenses 10 Total expenses 80 194 76 40 59 449 91 340 82 152 80 125 1n Operating Income 12 Allocated on the basis of machine hours. 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.) ir for retailer-two stocking scenarios (Learning
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