Fast Track produces two types of exercise? treadmills: regular and deluxe. The e

Question

Fast Track produces two types of exercise? treadmills: regular and deluxe. The exercise craze is such that Fast Track 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:

Per Unit Deluxe Regular Sales Price 1,030 $ 610 Costs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead" Variable operating expenses 340 74 282 96 120 194 94 32 63 503 909 Total costs

Explanation / Answer

Deluxe Treadmill Regular Treadmill Sales price per unit 1030 610 Variable per unit 813 471 Contribution margin per unit 217 139 Note: Variable costs include Direct materials Direct labor Variable manufacturing overhead Variable operating expenses

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