=+8-23 K Selection of most profitable product OBJECTIVES 2, 4 Body-Builders Ltd produces two basic types of weightlifting equipment, model 9 and model 14. Pertinent data are as follows:

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9 10 11 12 13 A B C Model 9 Model 14 gpricenilleS 00.051$ $105.00 Costs ialsretam tceriD 05.1900.42 Direct manufacturing labour 22.50 37.50 Variable manufacturing overhead* 37.50 18.75 Fixed manufacturing overhead* 15.00 7.50 Marketing (all variable) 21.00 15.00 tsoc latoT 00.138 98.25 profit gnitarepO 00.12$ 6.75

*Allocated on the basis of machine-hours Per unit

$

The weightlifting 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.

Required Which products should be produced? Briefly explain your answer.