E Homework: Ch10-HW Question 2, EM10-15 (similar to) HW Score: 55%, 11 of 20 points Sa Part 3 of 6 Points: 1 of 10 Exer Tread ad could use all its available machine hours to produce either The twin modole are processed through the production d - X (Click th Data table X Requirements Read the red Deluxe Regular 1. What is the constraint? Sales Price $ 1,020 $ 550 D- 2. Which model should Exer Tread produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by Costs: each product.) Requiremer Direct materials 320 110 d to 3. If Exer Tread should produce both models, compute the mix that will maximize operating income. Exer Tread 9 Direct labor 76 188 Variable manufacturing overhead 258 86 Now prepare Fixed manufacturing overhead* 108 36 Variable operating expenses 119 61 Print Done Total costs 881 481 Sale p $ 139 $ 69 Operating income Variab *allocated on the basis of machine hours ContriPart 3 of 6 Points: 1 of 10 Exer Tread produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Tread 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 2. Which model should Exer Tread produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Exer Tread should produce the product with the highest contribution margin per unit of the constraint . 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