Tread Land produces two types of exercise treadmills: regular and deluxe. 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: En (Click the icon to view the data.) Read the requirements. Requirement 1. What is the constraint? - X Tread Land's constraint is machine hours Requirements Requirement 2. Which model should Tread Land produce? (Hint: Use the allo d by each product.) Tread Land should produce the product with the highest contribution margin p 1. What is the constraint? 2. Which model should Tread Land produce? (Hint: Use the allocation of Now prepare the product mix analysis by starting with the contribution margin p fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Deluxe Regular 3. If Tread Land should produce both models, compute the mix that will treadmill treadmill maximize operating income. Sale price per unit Print Done Variable costs per unit Contribution margin per unitCole Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: (Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot and the contribution margin per square foot to two decimal places.) Product i Data Table - X Designer Moderately Priced Units displayed per square foot: Designer Per Item Moderately priced Moderately Designer Priced Contribution margin per unit Average sale price 220 $ 35 Contribution margin per square foot of display 23 space Average variable costs 95 Capacity-Square feet of display space Average contribution margin 125 62 Average fixed costs (allocated) 15 10 Total contribution margin at capacity 52 Average operating income 110 $ The Cole Company store in Grand Junction, Colorado, has 8,000 square feet of floor space. If Cole Company emphasizes moderately priced goods, it can display 560 items in the store. If Cole Company emphasizes designer wear, it can only display 240 designer items. These numbers are also the average monthly Enter any number in the edit fields and then click Check Answer. sales in units.Each morning, Joel White stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 100 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. i Requirements X Data Table - X 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? 2. Suppose Joel's Beach Hut refuses to devote more than 65 linear feet to any individual product. Joel's Beach Hut sells three types of cold drinks: Under this condition, how many linear feet of each drink should Joel's stock? How many units of 1. Licious - Ade in 12-oz. cans for $1.35 per can each product will be available for sale each day? 2. Licious - Ade in 20-oz. bottles for $2.00 per bottle 3. Vitamin Plus in 20-oz. bottles for $2.45 per bottle Print Done Joel's Beach Hut pays its suppliers: 1. 50.05 per 12-oz. can of Licious - Ade 12 oz. Cans 20 oz. Bottles 20 oz. Bottles 2. $0.50 per 20-oz. bottle of Licious - Ade 3. $0.90 per 20-oz. bottle of Vitamin Plus Sales price per unit Joel's Beach Hut's monthly fixed costs include: Variable cost per unit Hut rental $ 390 Contribution margin per unit Refrigerator rental 60 Units per linear foot of shelf space Joel's salary 1,400 Contribution margin per linear foot of shelf space Total fixed costs $ 1,850 Print Done Enter any number in the edit fields and then click Check Answer.Opti Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: En (Click the icon to view the costs.) i (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Opti Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make Outsource Difference optical switch optical switch (Make-Outsource) Variable costs: Direct materials i Data Table - X Direct labor Variable overhead Direct materials $ 8.00 Purchase price from outsider Direct labor 2.50 Total differential cost per unit Variable overhead 3.00 More Info - X Fixed overhead 7.50 i 21.00 Manufacturing product cost $ Another company has offered to sell Opti Systems the switch for $16.50 per Print Done unit. If Opti Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable.Spectra Systems manufactures an optical switch that it uses in its final product. Another company has offered to sell Spectra Systems the Spectra Systems needs 80,000 optical switches. By outsourcing them, Spectra Systems can use its idle facilities to manufacture another switch for $25.50 per unit. None of Spectra's fixed costs are avoidable. product that will contribute $221,000 to operating income. :(Click the icon to view the outsourcing decision.) Read the requirements. Requirement 1. Identify the expected net costs that Spectra Systems will incur to acquire 80,000 switches under three alternative plans. Outsource switches Data Table - X Facilities Make new Switch costs Make Idle product Variable costs: Make Outsource Difference Direct materials optical switch optical switch (Make-Outsource) Direct labor Variable costs: Variable manufacturing overhead Direct materials S 9.00 S 9.0 Purchase cost Direct labor 5.00 5.00 Expected profit contribution from the other product Variable overhead 9.00 3.00 Total expected net cost of the optical switches 25.50 (25.50) Purchase price from outsider S 23.00 3 25.50 S 2.50) Differential cost per unit Requirements - X Print Done 1. Identify the expected net costs that Spectra Systems will incur to acquire 80,000 switches under three alternative plans: make the switches, buy the switches and leave facilities idle, buy the switches and use the idle facilities to make another product. 2. Which plan makes the best use of Spectra System's facilities? Support your answer. Enter any number in part Print DoneOrganicfood processes organic milk into plain yogurt. i (Click the icon to view additional information.) Should Organicfood continue to sell only the gallon-size plain yogurt (sell as is) or convert the plain yogurt into individual-size portions of fruited yogurt (process further)? Why? (Use a minus sign or parentheses for amounts that are typically shown enclosed in parentheses in a sell or process further decision.) Process Costs Sell As Is Further Difference Expected revenue from selling by the gallon More Info - X Expected revenue from selling individual portions Additional costs of selling as is by the gallon Additional costs of processing individual portions Organicfood sells plain yogurt to hospitals, nursing homes, and restaurants in Total net revenue bulk, one-gallon containers. Each batch, processed at a cost of $850, yields 450 gallons of plain yogurt. Organicfood sells the one-gallon tubs for $7 each, and spends $0.22 for each plastic tub. Organicfood has recently begun to reconsider its strategy. Organicfood wonders if it would be more profitable to sell individual-size portions of fruited organic yogurt at local food stores. Organicfood could further process each batch of plain yogurt into 9,600 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicfood would sell each individual portion for $0.46. Packaging would cost $0.07 per portion, and fruit would cost $0. 11 per portion. Fixed costs would not change. Print Done