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10.23 * 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
10.23 * 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: Vie File Home Insert Page Layout Formulas Data Review A Per unit Model 9 Model 14 3 Selling price $150.00 $105.00 4 Costs 5 Direct materials 42.00 19.50 Direct manufacturing labour 22.50 37.50 | 7 Variable manufacturing overhead* 37.50 18.75 8 Fixed manufacturing overhead* 15.00 7.50 9 Marketing (all variable) 21.00 15.00 10 Total cost 138.00 98.25 11 Operating profit $ 12.00 $ 6.75 12 13[*Allocated on the basis of machine-hours 6 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
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