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AllTreads produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that APer Unit Deluxe Regular 530 $ Sale price 1,050 $ Less expenses: Direct materials 300 120 84 176 Direct labor Variable manufac

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Deluxe Regular
Sales Price per unit 1050 530
Variable costs per unit 681 453
Contribution Margin per unit 369 77
Units produced with equivalent number of machine hours 2 1
Contribution Margin for Equivalent number of machine hours 184.5 77
Since contribution Margin per equivalent machine hour is higher, all machine hours should be used to produce Deluxe
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