Value Inc. produces two types of exercise treadmills, regular and deluxe. The exercise craze is such that Fittime could use all of its available machine hours producing either model. The two models are processes in the same department. Information on the two models is as follows: PER UNIT Deluxe Regular $990 $560 Sales price Costs Direct materials Direct labour Variable manufacturing overhead Total variable costs 290 86 174 440 100 188 86 275 Total fixed costs are $100,000 which are all unavoidable. Each deluxe model takes 2.5 hours to produce and each regular model takes 1.5 hours to produce. Value Inc. has 2,000 machine hours available. Required: 1. What is the optimal product mix? What is the expected total CM at this optimal product mix? 2. Assume demand for the Regular model is limited to 800 units Deluxe model is limited to 600 units. What is the optimal product mix? What is the expected total CM at this optimal product mix