model. The two models are processed through the same production department.

$($Click the icon to view the data.$)$

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.

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Product Mix Analysis

$\backslash$table$[[,$Product Mix Analysis$]]$

Data table

$\backslash$table$[[,$A$,,,,],[1,,$Per Unit$],[2,,$Deluxe,Regular$],[3,$Sale price,$$,990,$$$,570],[4,$Less expenses:,,,,$],[5,$Direct materials,,$310,,100],[6,$Direct labor,,$92,,192],[7,$Variable manufacturing overhead,,$180,,90],[8,$Fixed manufacturing overhead$*,,76,,38],[9,$Variable operating expenses,,$119,,57],[10,$Total expenses,$$,777,$$$,477],[11,$Operating income,$$,213,$$$,93]]$

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