DE26-9 Runmaster, Inc.. produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that Runmaster could use all its available machine hours pro- ducing either model. The two models are processed through the same production departments. Which model should Runmaster produce? If both models should be produced, compute -the mix that will maximize operating income. Sale price. Costs: Direct materials. Direct labor Variable manufacturing overhead* Fixed manufacturing overhead* Variable operating expenses.. Total cost.... Operating income.. Allocated on the basis of machine hours. Per Unit Deluxe Regular $1,300 $750 $ 330 $140 150 250 375 125 150 50 140 100 1,145 665 $ 155 $ 85