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Griswold produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold could use all its available machine hours to
Griswold produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: EEB (Click the icon to view the data.) Read the requirements. Data Table Requirement 1. What is the constrain? Griswold's constraint is Per Unit Deluxe Regular Sales Price 1,050 S 560 Requirements Costs Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Operating Expenses 330 90 90 264 102 119 905 145 S 184 1. What is the constraint? 2. Which model should Griswold produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 34 3. If Griswold should produce both models, compute the mix that will maximize operating income 467 Total Costs Operating Income allocated on the basis of machine hours 93 Print Done parts remaining Clear Print Done
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