Epsilon produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Epsilon 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: E: (Click the icon to view the data.) Read the requirements Requirement 1. What is the constraint? Data Table Epsilon's constraint is Per Unit Deluxe Regular 540 $ 1,050 $ Requirements Sales Price Costs: 80 270 92 186 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses 252 1. What is the constraint? 2. Which model should Epsilon produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) 3. If Epsilon should produce both models, compute the mix that will maximize operating income. 84 126 42 117 65 857 457 Total costs $ 193 $ 83 Operating income *allocated on the basis of machine hours Print Done Print Done