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E25-15 (similar to) Question Help * Exer Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Exer Light

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E25-15 (similar to) Question Help * 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 6 Data Table Per Unit DeluxeRegular Sales Price 1.000s 610 Costs: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Operating Expenses 290 74 282 108 121 875 130 186 94 36 61 507 103 Total Costs Operating Income allocated on the basis of machine hours $125 S PrintDone i Requirements 1. What is the constraint? 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.) 3. If Exer Light should produce both models, compute the mix that will maximizeE operating income. Print Done

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