Question
100 pts pc Body Time, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: (Click the
100 pts pc Body Time, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: (Click the icon to view the data.) The weight-lifting craze suggests that Body Time can sell enough of either Model 9 or Model 14 to keep the plant operating at full capacity. Both products are processed through the same production departments. Read the requirements. Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. (Enter the amounts to the nearest cent.) Contribution margin per unit Model 9 Model 14 Contribution margin per machine hour Body Time, Inc. should produce: OA. Model 9, since this model results in the higher operating income per unit. OB. Model 9, since this model results in the higher contribution margin per unit. OC. Model 14, since this model results in the higher contribution margin per machine hour. OD. Both Model 9 and Model 14 since both models provide positive contribution margins. Choose from any list or enter any number in the input fields and then continue to the next question. complete) Requirements ody Time, I (Click th me weight- Which product should the company produce? Briefly explain your answer. oducts are mad the re Print Done fore deter Data Table chine. (Enter This Te - - X ta are as follows: A B 1 Per Unit Contributio 2 Model 9 Model 14 3 Selling price $ 110.00 $ 120.00 Contributio 4 Costs Time, Inc. 5 Direct material 29.00 11.00 Variable direct manufacturing Model 9, 6 labor 17.00 28.00 Model 9, 7 Variable manufacturing overhead 15.00 7.50 Model 14 8 Fixed manufacturing overhead 12.00 6.00 Both Mod Marketing (all variable) 16.00 14.00 10 Total costs 89.00 66.50 e from any 11 Operating income 21.00 $ 53.50 estion. 12 Allocated on the basis of machine-hours e plant operating at full ribution margin per mach
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