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E25-15 (similar to) Question Help Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze same production departments. Data for both
E25-15 (similar to) Question Help Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze same production departments. Data for both models are such that Fast Track could use all its available machine hours to produce either model. The two models are processed through the follows: EEB (Click the icon to view the data.) Read the requirements. Requirement 1. What is the constraint? Fast Track's constraint machine hours Requirement 2, Which model should Fast Track produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion f machine hours used by each product.) Fast Track 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 Enter any number in the edit fields and then click Check Answer. ? parts Cheals Ame.. Cleas Oll Requirements 1. What is the constraint? 2. Which model should Fast Track produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Fast Track should produce both models, compute the mix that will maximize operating income. Print Done Data Table rerummL Deluxe Regular Sales Price 980 $ 550 Costs: Direct materials 310 90 Direct labor 92 184 Variable manufacturing overhead 234 78 Fixed manufacturing overhead* 102 34 121 69 Variable operating expenses 859 455 Total costs 121 $ 95 Operating income allocated on the basis of machine boLurs Print Done
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