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Please complete all the parts FitTime produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that FitTime
Please complete all the parts
FitTime produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that FitTime 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. Fit Time Product Mix Analysis - X Data Table Deluxe Regular B 1 2 Per Unit Deluxe Regular 960 $ 550 3 Sale price 4 Less expenses: 5 Direct materials 290 150 6 84 Direct labor Variable manufacturing overhead Fixed manufacturing overhead* 188 90 7 270 8 132 44 111 67 9 Variable operating expenses 10 Total expenses $ 887 $ 539 $ 73 $ 11 11 Operating income *Allocated on the basis of machine hours Print DoneStep by Step Solution
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