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Tread Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Tread Light could use all its available machine
Tread Light produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Tread Light 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? Data Table i Requirements Tread Light's constraint is Per Unit Deluxe 1,030 $ Regular 610 1. What is the constraint? 2. Which model should Tread Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Tread Light should produce both models, compute the mix that will maximize operating income. Sales Price Costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Print Done Variable operating expenses Total costs 129 Operating Income 'allocated on the basis of machine hours
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