Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. help! exer tread produces two types of exercise t

Help! Exer Tread produces two types of exercise treadmills: Regular and Deluxe. The exercise...

70.2K

Verified Solution

Question

Accounting

imageHelp!

Exer Tread produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that ExerTread 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. Exer Tread Data Table Product Mix Analysis Deluxe Regular Sale price per unit A B Variable costs per unit 1 Per Unit Contribution margin per unit 2. Deluxe Regular Units produced with equivalent number of machine hours 3 Sale price $ 980 $ 610 Contribution margin for equivalent number of machine hours 4 Less expenses: 5 Direct materials 330 150 6 Direct labor 84 186 7 176 88 Variable manufacturing overhead Fixed manufacturing overhead* 8 96 48 9 Variable operating expenses 109 61 10 Total expenses $ 795 $ 533 $ 185/$ 77 11 Operating income *Allocated on the basis of machine hours

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Electrical Engineering
1.2K views

give a detailed matlab code to implement unscented KF on arbitrary first order nonlinear system

Biology
1.2K views

Now that you have an understanding of Earth s 4 spheres you can apply this...

Biology
1.2K views

A mouse embryo is produced with only one chromosome 16 Assuming normal sperm contribution a...

Biology
1.2K views

Name two systems that interact with the circulatory system and expand on the way they...

Physics
1.2K views

The antenna current of an AM transmitter is 8 A when only the carrier is...

Geometry
1.2K views

d a formula for the quadratic function depicted in the following graph Answer 10 S...

Geometry
1.2K views

Introduction Create your own Polar Masterpiece using Polar Art and Desmos Calculator 412 Getting Started...

Basic Math
1.2K views

The lifetime of a specific brand of alkaline battery used in a smoke alarm is...

Algebra
1.2K views

he following table shows the rate R of vehicular involvement in traffic accidents per 100...

Algebra
1.2K views

7 1 3x 4y 6 x 2y 8

Accounting
1.2K views

Comprehensive Problem for Chapters 1-4 Journalizing, Posting, Work Sheet,...

Accounting
1.2K views

4) How much money will be in a bank account at the end of 15...