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ExerLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that Exerlight could use all of its available machine hours
ExerLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that Exerlight could use all of its available machine hours producing either model The two models are processed through the same production department. ( (Click the icon to view the data.) Requirement What product mix will maximize operating income? Prepare the product mix analysis. ExerLight should produce the product with the contribution margin per unit of the constraint. times as much overhead cost is allocated to each Deluxe model as to each Regular model. In other words, it takes times as many machine hours to produce a Deluxe model. For each unit of the Deluxe model produced (contributing $ Square to operating income). ExerLight can produce units of the Regular model (contributing $ Square to operating income). Therefore. ExerLight should produce
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