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What am I doing wrong on the last part? I can not figure it out Fast Track produces two types of exercise treadmills: regular and
What am I doing wrong on the last part? I can not figure it out
Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Fast Track 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 2. Which model should Fast Track produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product. Fast Track should produce the product with the highest contribution margin per unit of the constraint. X Now prepare the product mix analysis by starting with the contribution margin per unit. Data table Deluxe Regular treadmill treadmill 990 S 540 697 409 Sale price per unit $ Per Unit Deluxe Regular 990 $ 540 Variable costs per unit $ 293 S 131 Contribution margin per unit Sales Price Costs Direct materials Direct labor 270 80 Next, calculate the proportion of machine hours used. 74 184 240 80 Fixed overhead $ 114 $ $ 38 Proportion of machine hours used 75 % Deluxe Treadmill Regular Treadmill Total overhead + $ 152 + $ 152 Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses 114 25 % 38 65 113 Finally, calculate the contribution margin per machine hour. 811 447 Total costs Deluxe $ 179 $ 93 Regular treadmill treadmill Operating income *allocated on the basis of machine hours Units that can be produced each machine hour Contribution margin Print Done $ 131 293 per machine hour Help me solve this Demodocs example Get more help Clear all Final checkStep by Step Solution
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