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ExerLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that ExerLight could use all of its
ExerLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand 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.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis. ExerLight Product Mix Analysis Deluxe Regular 550 Sale price per unit S 990 $ 178 88 Variable costs per unit Contribution margin per unit Units produced with equivalent number of machine hours Contribution margin for equivalent number of machine hours Data Table .X Per Unit Deluxe Regular 990 $ 550 $ 320 70 Sale price Less expenses Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 92 180 176 88 92 107 46 63 Variable operating expenses 787 $ 447 Total expenses s $ 203 $ 103 Operating income *Allocated on the basis of machine hours Print Done
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