Selection of most profitable product. Body-Builders, Inc., produces two basic types of weight- lifting equipment, Model 9 and Model 14. Pertinent data are as follows:

The weight-lifting craze is such that enough of either Model 9 or Model 14 can be sold to keep the plant operating at full capacity. Both products are processed through the same production departments. Which products should be produced? Briefly explain youranswer.

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Per Unit Model 19 Model 14 Selling Price Costs $100.00 $70.00 Direct material 28.00 13.00 Direct manufacturing labor Variable manufacturing overhead* Fixed manufacturing overhead* Marketing (all variable) Total cost 15.00 25.00 25.00 12.50 10.00 5.00 14.00 10.00 92.00 $ 8.00 65.50 Operating income $ 4.50 *Allocated on the basis of machine-hours