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Per Unit Deluxe Regular 610 Sales Price $ 1,020 $ Costs: 290 120 Direct materials 74 178 Direct labor 240 80 Variable manufacturing overhead Fixed manufacturing overhead 108 121 36 61 Variable operating expenses 833 475 Total costs $ 187 $ 135 on Operating income *allocated on the basis of machine hours equirements 1. What is the constraint? 2. Which model should Exer Light produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Exer Light should produce both models, compute the mix that will maximize operating income. Exer Light produces two types of exercise treadmills regular and Souve The exerase craze is such that Exer Light could use all is available machine hours to produce either moc 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 equirement ROYUM ZA MOU SHOUL CELOR PRO USERS OR OR OR DINIY UVEDU ID URINN UPUNGUTTORE RLS SATU UYGION product) Exer Light should produce the product with the highest contribution margin per unit of the constraint Now prepare the product mix analysis by starting with the contribution margin per unit Deluxe Regular treadmill treadmil Sale price per unit $ 1,020 5 610 Variable costs per unit S 2955 171 Contribution maroin perunt Next, calculate the proportion of machine hours used Fored overhead Total overhead Proportion of machine hours ured Deluxe Treadmil Regulat Troaden 725 439 Faraw

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