same production departments. Data for both models are as follows:

View the data.

Read the requirements.

Requirement $1.$ What is the constraint?

Griswold Treadmills' constraint is machine hours $\text{'}$

Requirement $2.$ Which model should Griswold Treadmills produce? $($Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.$)$

Griswold Treadmills 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.

$\backslash$table$[[,\backslash$table$[[$Deluxe$],[$treadmill$]],\backslash$table$[[$Regular$],[$treadmill$]]],[$Sale price per unit,,$],[$Coniable costs per unit,,$]]$

Requirements

What is the constraint?

Which model should Griswold Treadmills produce? $($Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.$)$

If Griswold Treadmills should produce both models, compute the mix that will maximize operating income.

Data

$\backslash$table$[[$Sales Price,Per Unit$],[$Deluxe$,$Regular$],[$$$,1,050$$$,610],[$Costs:$],[$Direct materials,,$340,120],[$Direct labor,,$82,194],[$Variable manufacturing overhead,.,$228,76],[$Fixed manufacturing overhead$*,,144,48],[$Variable operating expenses,,$113,61],[$Total costs,,$907,499],[$Operating income,$$,{143}^{\text{\$}},111]]$