Deluxe Regular 1,020 $ 580 $ 689 449 Sale price per unit Variable costs per unit Contribution margin per unit Units produced with equivalent number of machine hours Contribution margin for equivalent number of machine hours 331 131 1 2 $ 331 $ 262 ExcerTreads should produce the product with the highest contribution margin per unit of the constraint. Two times as much overhead cost is allocated to each Deluxe model as to each Regular model. In other words, it takes two times as many machine hours to produce a Deluxe model. For each unit of the Deluxe model produced (contributing produce units of the Regular model contributing ExcerTreads should produce per machine hour to operating income), Excer Treads can per machine hour to operating income). Therefore