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Per Unit Deluxe Regular 1,000 $ 540 Sale price $ Less expenses: Direct materials 340 Direct labor 82 Variable manufacturing overhead Fixed manufacturing overhead* Variable
Per Unit Deluxe Regular 1,000 $ 540 Sale price $ Less expenses: Direct materials 340 Direct labor 82 Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses Total expenses 779 $ TreadFast produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that TreadFast could use all of its available machine hours producing either model. The two models are processed through the same production department. E: (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. Treadfast Product Mix Analysis Deluxe Regular
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