Question

Tra c es tipes of Regular and was the c a se and related demand is such could use of machine hos producing model Them es are through the same production department Potepinis Data Teadlight Product Me Analysis

Answer 1

Product mix Analysis
	Cost per unit
	Deluxe	Regular
Sales	$     980.00	$     620.00
Variable cost per unit (280 + 84 + 156 + 119) ;(140+190+78+71)	$     639.00	$     479.00
Contribution Margin per unit	$     341.00	$     141.00
Units produced with equivalent machine hours (92/46)	1	2
Contribution margin for equivalent machine hours	$     341.00	$     282.00
Ratio of the Deluxe treadmill fixed manufacturing overhead cost to that of the Regular treadmill. It takes the company two times as many machine hours to produce the Deluxe model as it does the Regular model	2:01
Tread light should produce the product with highest contribution margin per unit of constraint
Two  tmes as much overhead cost  is allocated to each Delux model as to each regular model.
It takes two tmes as many machine hours to produce a delux model.
Deluxe model produced  contributing $341 per machine hours to operating income
Regular  model produced  contributing $282 per machine hours to operating income
Tread light should produce only deluxe Model