How to answer the last question?

What product mix should Simon choose to maximize operating income? (Enter an amount in each input cell, including zero balances.)

i Data Table -X A6 EX4 Selling price $ 105 $ 175 Variable manufacturing cost per unit $ 85 $ 115 Variable marketing cost per unit $ 5 $ 30 Budgeted total fixed overhead costs $ 420,000 $ 425,000 Hours required to produce one unit on the regular machine 1.0 0.5 Additional information includes the following: a. Simon faces a capacity constraint on the regular machine of 50,000 hours per year. b. The capacity of the high-precision machine is not a constraint. c. Of the $425,000 budgeted fixed overhead costs of EX4, $225,000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Simon uses the machine exclusively to produce EX4. The company can cancel the lease agreement for the high-precision machine at any time without penalties. d. All other overhead costs are fixed and cannot be changed. Print Done Requirement 3. Suppose that the capacity of the regular machines has been increased to 70,000 hours. Simon has been approached by Moriarty Corporation to supply 24,000 units of another cutting tool, V2, for $165 per unit. Simon must either accept the order for all 24,000 units or reject it totally. V2 is exactly like A6 except that its variable manufacturing cost is $90 per unit. (It takes one hour to produce one unit of V2 on the regular machine, and variable marketing cost equals $5 per unit.) What product mix should Simon choose to maximize operating income? Show your calculations. First, determine the amount that should be used to determine if Simon should accept Moriarty's order. A6 EX4 V2 Contribution margin per hour of the constrained resource $ 15 $ 60 $ 70 Simon should accept Moriarty's order Next, determine the product mix for A6 and EX4 that will maximize operating income along with the decision you made about Moriarty's order. (Enter an amount in each input cell including zero balances.) A6 EX4 Contribution margin per hour of the constrained resource $ 60 15 $ 46,000 Hours of constrained resource 46,000 Contribution margin per hour of the constrained resource $ 15 $ 60 $ 70 Simon should accept Moriarty's order. Next, determine the product mix for A6 and EX4 that will maximize operating income along with the decision you made about Moriarty's order. (Enter an amount in each input cel including zero balances.) A6 EX4 Contribution margin per hour of the constrained resource $ 15 $ 60 46.000 46,000 X Hours of constrained resource Total contribution margin $ 690,000 $ 2,760,000 225,000 o Less: Lease costs of the high-precision machine 690,000 $ 2,535,000 Net relevant benefit What product mix should Simon choose to maximize operating income? (Enter an amount in each input cell, including zero balances) units of V2 Based on the above calculations, the product mix that maximizes operating income is units of A6, and units of EX4. Enter any number in the edit fields and then click check