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Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that Lifemaster could use all processed through the same production
Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that Lifemaster could use all processed through the same production department. its available machine hours producing either model. The two models are (Click the icon to view the data.) Requiren 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. Data Table Lifemaster Product Mix Analysis Deluxe Regular Per Unit Deluxe Regular 1,020 $ 570 Sale price Costs: Direct materials 290 $ 90 Direct labor 88 182 Variable manufacturing overhead 252 84 Fixed manufacturing overhead 126 42 113 65 Variable operating expenses 869 463 Total cost 151 $ 107 Operating.income Allocated on the basis of machine hours
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