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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: 2. Which model should Tread Light produce? (Hint: OH is allocated on basis of machine hours. Deluxe uses 3 times the Fixed OH that Regular uses. This means that the Deluxe uses 3x the machine hours compared to Regular. Consider CM per equivalent machine hour.) 3. If Tread Light should produce both models, compute the mix that will maximize operating income
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