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GetFit produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that GetFit could use all of its
GetFit produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that GetFit 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 rrix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overticed to determine the proportion of machine hours used by each product.) - X Data table Prepare the product mix analysis A BIC 1 GetFit Product Mix Analysis Per Unit 2 Deluxe Regular Deluxe Regular $ 1,040 S 580 3 Sale price 4 Less expenses 5 Direct materials 290 120 6 Direct labor 76 186 7 7 240 80 Variable manufacturing overhead Fixed manufacturing overhead 8 120 40 9 Variable operating expenses 115 59 $ 841 s 485 10 Total expenses 11 Operating income *Allocated on the basis of machine hours $ 199 $ 95 Print Done
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