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Tread Land produces two types of exercise treadmills regular and deluse. The exercise craze is such that Tread Land could use all its available machine

Tread Land produces two types of exercise treadmills regular and deluse. The exercise craze is such that Tread Land could 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 Click the icon to view the data) Read the requirements Requirement 1. What is the constraint Tread Land's constraint is Requirement 2. Which model should Tread Land produce? (Het Use the allocation of feed manufacturing overhead to determine the portion of machine hours used by a product Tisal Land should produce the product with the Now prepare the product mix analysis by starting with the corbution margin pu Carbun Deluxe T Regul (Click the icon to view the data) Read the requirements Variable costs per unit Contribution margin per unit Next, calculate the proportion of machine hours used. Fixed overhead Total overhead Deluxe Treadmill Regular Treadmil W Finally, calculate the contribution margin per machine hour. Deluxe Regular treadmill treadmil Units that can be produced wach machine hour Contribution margin Proportion of machine hours used % Der machine hour Requirement 3. f Tread Land should produce both models, compute the mix that will maximize operating income Tread Land should produce because Data table Per Unit Deluxe Regular 1,010 $ 590 verhead Sales Price Costs: Direct materials. 300 110 76 194 Direct labor Variable manufacturing overhead 252 84 Fixed manufacturing overhead* 144 48 111 69 ur. Variable operating expenses 883 505 . Regul Total costs 127 $ 85 treadm Operating income models, compute t "allocated on the basis of machine hours YTBCause Print Done x

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