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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.) Product Mix Analysis Deluxe Regular Contribution margin for equivalent number of machine hours Choose from any list or enter any number in the input fields and then click Check Answer Darts CI ITIL 2 Deluxe Regular $ 1,040 $ 560 3 Sale price 4 Less expenses: 5 Direct materials I 300 130 6 84 184 7 Direct labor Variable manufacturing overhead Fixed manufacturing overhead* 234 78 8 156 52 9 Variable operating expenses 115 71 10 Total expenses $ 889 $ 515 $ 11 Operating income 151 $ 45 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.) Product Mix Analysis Deluxe Regular Contribution margin for equivalent number of machine hours Choose from any list or enter any number in the input fields and then click Check Answer Darts CI ITIL 2 Deluxe Regular $ 1,040 $ 560 3 Sale price 4 Less expenses: 5 Direct materials I 300 130 6 84 184 7 Direct labor Variable manufacturing overhead Fixed manufacturing overhead* 234 78 8 156 52 9 Variable operating expenses 115 71 10 Total expenses $ 889 $ 515 $ 11 Operating income 151 $ 45

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