Griswold Treadmills produces two types of exercise treadmills: regular and deluxe. The exercise craze is such...

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Griswold Treadmills produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold Treadmills could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: View the data. Read the requirements. Requirement 1. What is the constraint? Griswold Treadmills' constraint is machine hours Requirement 2. Which model should Griswold Treadmills produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Griswold Treadmills 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. Sale price per unit Variable costs per unit Contribution margin per unit Requirements Deluxe treadmill Regular treadmill 1. What is the constraint? 2. Which model should Griswold Treadmills produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Griswold Treadmills should produce both models, compute the mix that will maximize operating income. - Data Per Unit Deluxe Regular $ 1,050 $ 610 Sales Price Costs: Direct materials 340 120 Direct labor 82 194 Variable manufacturing overhead 228 76 Fixed manufacturing overhead* Variable operating expenses 144 48 113 61 907 499 Total costs S 143 $ 111 Operating income *allocated on the basis of machine hours Griswold Treadmills produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Griswold Treadmills could use all its available machine hours to produce either model. The two models are processed through the same production departments. Data for both models are as follows: View the data. Read the requirements. Requirement 1. What is the constraint? Griswold Treadmills' constraint is machine hours Requirement 2. Which model should Griswold Treadmills produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Griswold Treadmills 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. Sale price per unit Variable costs per unit Contribution margin per unit Requirements Deluxe treadmill Regular treadmill 1. What is the constraint? 2. Which model should Griswold Treadmills produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Griswold Treadmills should produce both models, compute the mix that will maximize operating income. - Data Per Unit Deluxe Regular $ 1,050 $ 610 Sales Price Costs: Direct materials 340 120 Direct labor 82 194 Variable manufacturing overhead 228 76 Fixed manufacturing overhead* Variable operating expenses 144 48 113 61 907 499 Total costs S 143 $ 111 Operating income *allocated on the basis of machine hours