Fast Track produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Fast Track 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: (Click the icon to view the data.) Read the requirements, Requirement 1. What is the constraint? Fast Track's constraint is machine hours Requirement 2. Which model should Fast Track produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Fast Track should produce the product with the highest contribution margin per unit of the constraint Now prepare the product mix analysis by starting with the contribution margin per unit. Deluxe Regular treadmill treadmill Sale price per unit Variable costs per unit Contribution margin per unit - X Data Table Per Unit Deluxe Regular $ 960 $ 550 280 90 178 90 246 82 Sales Price Costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead* Variable operating expenses Total costs Operating income *allocated on the basis of machine hours 108 121 36 65 845 451 $ 115 $ 99 Print Done Requirements 1. What is the constraint? 2. Which model should Fast Track produce? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product) 3. If Fast Track should produce both models, compute the mix that will maximize operating income. Print Done