Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaste 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 is as follows:
Per Unit
Deluxe Regular
Sale Price $ 1,020 $ 560
Costs:
Direct Material 300 90
Direct Labor 88 188
Variable Manufacturing Overhead 264 88
Fixed Manufacturing Overhead* 138 46
Variable Operating Expenses 111 65
Total Costs 901 477
Operating Income $ 119 $ 83
*allocated on the basis of machine hours
Requirements
1. What is the constraint?
2. Which model should Lifemaster produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.)
3. If Lifemaster should produce both models, compute the mix that will maximize operating income.
Answers: 2
Business, 22.06.2019 16:50, bandzlvr
Andrea cujoli is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. currently the spot price for the japanese yen is ¥129.87/$ and the 6-month forward rate is ¥128.53/$. andrea would earn a higher rate of return by buying yen and a forward contract than if she had invested her money in 6-month us treasury securities at an annual rate of 2.50%. true/false?
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Business, 22.06.2019 22:10, tilsendt
Scoresby co. uses 6 machine hours and 2 direct labor hours to produce product x. it uses 8 machine hours and 16 direct labor hours to produce product y. scoresby's assembly and finishing departments have factory overhead rates of $240 per machine hour and $160 per direct labor hour, respectively. how much overhead cost will be charged to the two products? a. product x = $1,440; product y = $2,560 b. product x = $1,760; product y = $4,480 c. product x = $3,200; product y = $9,600 d. product x = $800; product y = $800
Answers: 1
Business, 22.06.2019 22:50, tiffanibell71
Adding a complementary product to what is currently being produced is a demand management strategy used when: a. capacity exceeds demand for a product that has stable demand. b. price increases have failed to bring about demand management. c. demand exceeds capacity. d. demand exceeds 100 percent. e. the existing product has seasonal or cyclical demand.
Answers: 3
Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such...
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