ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and relatod demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through thesarne produclion department.E (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.Data tableExerLightProduct Mix AnalysisABDoluxeRegularPer UnitSale price per unit1,0506002DeluxeRegular11157Variable cosls per unit3 Sale price1,050 $600Contribution margin per unit4 Less expenses:Units produced with equivalent number of machine hours5Direct materials260150Contribution margin for equivalent number of machine hoursDirect labor806178Variable manufacturing overhead28294Fixed manufacturing overhead*14448Variable operating expenses1115710 Total expenses877 $52711 Operating income*Allocated on the basis of machine hours173 $73PrintDone

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Description: ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and relatod demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through thesarne p

WN1- Calculation of Variable cost per unit: Deluxe Regular Direct material 260 150 Direct…

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ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and relatod demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through the same production department. (Click the ioon 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.) - X Prepare the product mix analysis. Data table ExerLight Product Mix Analysis A Deluxe Regular 1. Per Unit Sale price per unit 1,050 600 2 Deluxe Regular 111 57 Variable costs per unit 3 Sale price 1,050 $ 600 Contribution margin per unit 4 Less expenses: Units produced with equivalent number of machine hours 5 Direct materials 260 150 Contribution margin for equivalent number of machine hours 6 Direct labor 80 178 Variable manufacturing overhead 282 94 Fixed manufacturing overhead 144 48 Variable operating expenses 111 57 10 Total expenses 877 $ 527 11 Operating income 173 $ 73 "Allocated on the basis of machine hours Print Done

ExerLight produces two types of exercise treadmils: Regular and Deluxe. The exercise craze and relatod demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through the same production department. (Click the ioon 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.) - X Prepare the product mix analysis. Data table ExerLight Product Mix Analysis A Deluxe Regular 1. Per Unit Sale price per unit 1,050 600 2 Deluxe Regular 111 57 Variable costs per unit 3 Sale price 1,050 $ 600 Contribution margin per unit 4 Less expenses: Units produced with equivalent number of machine hours 5 Direct materials 260 150 Contribution margin for equivalent number of machine hours 6 Direct labor 80 178 Variable manufacturing overhead 282 94 Fixed manufacturing overhead 144 48 Variable operating expenses 111 57 10 Total expenses 877 $ 527 11 Operating income 173 $ 73 "Allocated on the basis of machine hours Print Done

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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