TreadLight produces two types of exercise treadmills: Regular and Deluxe. The exercise craze is such that TreadLight could use all of its available machine hours producing either model. The two models are processed through the same production department.

What product mix will maximize operating income? * Allocatedon

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1 Per Unit Deluxe 3 Sales price 4 Less expenses: 5 Direct materlals 6 Direct labor 7Variable manufacturing overhead 8 Fixed manufacturing overhead 9Variable operatingxperses 10 Total expenses 11 Operating income 12 1020 S 580 110 186 84 40 69 320 168 80 113 251 S 91