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TreadMile produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that TreadMile could use all of
TreadMile produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that TreadMile could use all of its available machine hours producing either model. The two models are processed through the same production department (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis. TreadMile Product Mix Analysis Deluxe Regular Data table 1 2 A B 3 Sale price 4 Less expenses: Direct materials Per Unit Deluxe C S - Regular 970 $ 620 5 330 120 6 Direct labor 84 180 7 Variable manufacturing overhead 168 8 Fixed manufacturing overhead* 28 84 92 113 46 46 61 9 Variable operating expenses S 787 $ 491 10 Total expenses 11 Operating income $ 183 $ 129 Print Done
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