as Exertight could use all of its be machine hours producing the ExerLight produces two types of exercise treadmills: Regular and Dale The variteze and related demand is such model. The two models are processed through the same production department PER (Click the icon to view the data) What product mix will maximize operating income? Mint Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product) Prepare the product mix analysis Exerlight Product Mix Analysis Exerlight should produce the product with the contribution margin perunt of the constraint times as many machine hours to de ch e cost is located to each Deluxe model as to each Regular model in other words, it takes per machine hour to operating income, Exightcom e machine hour to operating income Theore For each unit of the Dele model produced contributing 5 produce n ts of the Regular model contributing 5 Exertight should produce Data Table Per Unit Deluxe 960 $ Regular 550 290 110 88 190 Sale price Less expenses: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses Total expenses 240 80 LIETTE 108 113 839 $ 491 121 $ Operating income *Allocated on the basis of machine hours Print Done Contribution margin for equivalent number of direct labor hours Contribution margin for equivalent number of machine hours Contribution margin per unit Fixed costs per unit Sale price per unit Units produced with equivalent number of direct labor hours Units produced with equivalent number of machine hours Variable costs per unit mar del Exerlight should produce the product with the contribution margin per unit of the constraint times as much overhead cost is alloca ke model as to each Regular model. In other words, it takes it highest For each unit of the Deluxe model produced (cf lowest produce units of the Regular model (contributing 5 Exer.ight should produce 1933 per machine hour to operating income), Exerlight per machine hour to operating income). Therefore, M times as much overhead cost is allocated to each Deluxe model as to each Regular model. In other words, it takes times as Three f the Deluxe model produced (contributing $ units of the Regular nodel (contributing $ Id produce per machine hour to operating income). Exerlight can per machine hour to operating income). Therefore, ular model (contributing $ w pelalily Hille), Exeilight can per machine hour to operating income). Therefore, only the Deluxe model. only the Regular model. three times as many Deluxe models as Regular models. three times as many Regular models as Deluxe models