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Lifemaster produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that Lifemaster 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.

Lifemaster

Product Mix Analysis

Deluxe

Regular

Per Unit

Ssle price

Less expenses:

Direct matorials

Dired hbor

Wrisble manuhaturing ovohad

Fied munutscturing overhasd"

Wrinble operathe oxpenes:

Total expenses

Oprating incom

"Aocred on the bustis of meninh hourt

Doluxo

$5$

$5603$

Rogular

$530$

$310,140$

$76,180$

$282.$

$150\mathrm{.}150$

$115.61$

$5.9235,625$

$3,275$