ExerLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that ExerLight could use all of its available machine hours producing either model. The two models are processed through the same production department.

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What product mix will maximize operating income? $($Hint$.$ 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

$\backslash$table$[[,$Deluxe,Regular$],[,,],[,,],[,,],[,,],[,,],[,,]]$

Data table

$\backslash$table$[[1,$A$,,$B$,$C$],[$Per Unit$],[-2,,$Deluxe,Regular$],[3,$Sale price,$$,1,020,$$$,590],[4,$Less expenses:,,,,$],[5,$Direct materials,,$260,,120],[6,$Direct labor,,$88,,178],[7,$Variable manufacturing overhead,,$156,,78],[8,$Fixed manufacturing overhead$*,,92,,46,$