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Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster could use all of its

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Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster 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. Lifemaster Product Mix Analysis Deluxe Regular Lifemaster should produce the product with the contribution margin per unit of the constraint. Choose from any list or enter any number in the input fields and then continue to the next question. ? Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster 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.) Lifemaster 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. per machine hour to operating income), Lifemaster can For each unit of the Deluxe model produced (contributing units of the Regular model produce (contributing Lifemaster should produce per machine hour to operating income). Therefore, Choose from any list or enter any number in the input fields and then continue to the next question A A i Data Table prod fema - sam che id dema are pro A B uct m tion o ad to d. 1 Per Unit N Deluxe Regular $ 1,050 $ 560 3 Sale price 4 Less expenses: Direct materials er shou 310 70 6 Direct labor 80 182 mes as 7 156 78 Ir words, it mes as 8 Variable manufacturing overhead Fixed manufacturing overhead" Variable operating expenses 84 42 9 119 57 unit of uting 10 Total expenses 749 $ 429 naster can $ $ 301 $ 131 11 Operating income *Allocated on the basis of machine hours Jefore, ster shoy from ar Print Done

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