Business, 17.06.2020 20:57, ddrain6285
Healthy Time produces two types of exercise​ treadmills: regular and deluxe. The exercise craze is such that Healthy Time 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:
Deluxe per unit Regular per unit
Sale Price: ($1,010) ($560)
Costs:
Direct materials: ($320) ($90)
Direct labor: ($82) ($184)
Variable manufacturing overhead: ($240) ($80)
Fixed manufacturing overhead *: ($126) ($42)
Variable operating expenses: ($117) ($69)
Total cost: ($885) ($465)
Operating income: ($125) ($95)
Required:
a. What is the constraint?
b. Which model should Treadlight produce?
c. Should Treadlight produce both models? If so, compute the mix that will maximize operating income.
Answers: 1
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Healthy Time produces two types of exercise​ treadmills: regular and deluxe. The exercise craze is...
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