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please answer!! Horngren's Accounting + Marketing The Core 7th edi v file:///C/Users/ .s%20 Accounting%2012th%20Edition-%20Tracie%20L%20Miller-Nobles.pdf 1446 chapter 25 E25-15 Making product mix decisions Learning objective 3

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Horngren's Accounting + Marketing The Core 7th edi v file:///C/Users/ .s%20 Accounting%2012th%20Edition-%20Tracie%20L%20Miller-Nobles.pdf 1446 chapter 25 E25-15 Making product mix decisions Learning objective 3 Tread Light produces two types of exercise treadmills: regular and deluxe. The excrcise craze is such that Tread Light coukd 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: 2. CM per MHr, Regulor $441 Per Unit Deluxe Regular 1,030 Sales price 610 Costs: Direct materials 320 130 180 90 34 63 497 113 Direct labor Veriable manufacturing overhead 270 102 121 901 S 129 Fixed manufacturing overhead* Variable operating expenses Total costs Operating income allocated on the basis of machine hours Requirements 1. What is the constraint? 2. Which model shoukd Tread Light produce? (lin Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by cach product.) T'read Light should produce both models, compute t 3. If Tread Light should pro the mix that will maximize operating income. E25-16 Making sales mix decisions Learning objective 3 Moore Company sells both designer and moderately priced fashion accessories. Top Horngren's Accounting + Marketing The Core 7th edi v file:///C/Users/ .s%20 Accounting%2012th%20Edition-%20Tracie%20L%20Miller-Nobles.pdf 1446 chapter 25 E25-15 Making product mix decisions Learning objective 3 Tread Light produces two types of exercise treadmills: regular and deluxe. The excrcise craze is such that Tread Light coukd 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: 2. CM per MHr, Regulor $441 Per Unit Deluxe Regular 1,030 Sales price 610 Costs: Direct materials 320 130 180 90 34 63 497 113 Direct labor Veriable manufacturing overhead 270 102 121 901 S 129 Fixed manufacturing overhead* Variable operating expenses Total costs Operating income allocated on the basis of machine hours Requirements 1. What is the constraint? 2. Which model shoukd Tread Light produce? (lin Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by cach product.) T'read Light should produce both models, compute t 3. If Tread Light should pro the mix that will maximize operating income. E25-16 Making sales mix decisions Learning objective 3 Moore Company sells both designer and moderately priced fashion accessories. Top

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