Question
E25-15 (similar Tread Land produces two types Data for both models are as fol (Click the icon to view the Read the requirements. Requirement 1.
E25-15 (similar Tread Land produces two types Data for both models are as fol (Click the icon to view the Read the requirements. Requirement 1. What is the co Tread Land's constraint is mad Requirement 2. Which model Requirements 1. What is the constraint? - X 2. Which model should Tread Land produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Tread Land should produce both models, compute the mix that will maximize operating income. Print Done Tread Land should produce the Now prepare the product mix analysis by starting with the contribution margin per unit. Sale price per unit Variable costs per unit Contribution margin per unit Deluxe Regular treadmill treadmill 980 540 Enter any number in the edit fields and then click Check Answer. 3 parts remaining Question Help use all its available machine hours to produce either model. The two models are processed through the same production departments. Data Table Per Unit Deluxe Regular $ 980 $ 540 Sales Price Costs: Direct materials Direct labor 270 90 86 178 Variable manufacturing overhead 258 86 Fixed manufacturing overhead* 144 48 121 61 Variable operating expenses 879 463 Total costs $ 101 $ 77 Operating income *allocated on the basis of machine hours Clear All Print Done Check
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