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GetFit produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is that GetFit could use all of its available
GetFit produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is that GetFit could use all of its available machine hours producing either model. The two models are processed th 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. GetFit GetFit 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. (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.) GetFit 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 per machine hour to operating income), GetFit can units of the Regular model produce (contributing per machine hour to operating income). Therefore, GetFit should produce Data table Contribution margin for equivalent number of direct labor hours Contribution margin for equivalent number of machine hours Contribution margin per unit e constraint. Fixed costs per unit egular model. In Sale price per unit Units produced with equivalent number of direct labor hours 3income), GetFit Units produced with equivalent number of machine hours 3 income). Therefo Variable costs per unit (1) Time Remaining: 00:17:12
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