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PLEASE DONT CROP OUT THE ANSWERS Briswold produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold could use
PLEASE DONT CROP OUT THE ANSWERS
Briswold produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold could use all its vailable machine hours to produce either model. The two models are processed through the same production departments. Data for Poth models are as follows: Click the icon to view the data.) Read the requirements Requirement 1. What is the constraint? Briswold's constraint is machine hours Requirement 2. Which model should Griswold produce ? (Hint: Use the allocation of fixed manufacturing overhead to determine the roportion of machine hours used by each product) Briswold should produce the product with the highest contribution margin per unit of the constraint How prepare the product mix analysis by starting with the contribution margin per unit Deluxe Regular treadmill treadmill Sale price per unit 1.030 Variable costs per unit Contribution margin per unit Ques III Data table Per Unit Griswold produces to available machine ho both models are as fo B Click the icon to Read the requirement Deluxe Regular 1,030 $ 550 270 110 Requirement 1. Wha 74 180 Griswold's constraint 246 82 Sales Price Costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable operating expenses Total costs Operating income 'allocated on the basis of machine hours 96 Requirement 2. Whid proportion of machine 32 117 65 Griswold should prod 803 469 227 $ 81 Now prepare the prod Sale price per Print Done Requireme 1. What is the constraint? 2. Which model should Griswold produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Griswold should produce both models, compute the mix that will maximize operating income na all Final Step by Step Solution
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