Question 3:

The two models are processed through the same production departments. Data for both models are as follows: (Click the icon to view the data.) Read the requirements. Data table Tread Land's constraint is Requirement 2. Which model should Tread Land produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Tread Land should produce the product with the highest contribution margin per unit of the constraint . Now prepare the product mix analysis by starting with the contribution margin per unit. Next, calculate the proportion of machine hours used. Finally, calculate the contribution margin per machine hour. Requirement 3. If Tread Land should produce both models, compute the mix that will maximize operating income. Tread Land should produce because th