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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
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.) Model 9 Model 14 x Data Table Contribution margin per unit B 1 Per Unit - Contribution margin per machine hour 2. Model 9 Model 14 $ 130.00 $ 90.00 Body Time, Inc. should produce: 3 Selling price 4 Costs 5 24.00 8.00 O A. Model 9, since this model results in the higher operating income per unit. O B. Model 14, since this model results in the higher contribution margin per machine hour. OC. Model 9, since this model results the higher contribution margin per unit. O D. Both Model 9 and Model 14 since both models provide positive contribution margins Direct material Variable direct manufacturing labor 6 14.00 20.00 7 26.00 13.00 8 Variable manufacturing overhead Fixed manufacturing overhead* Marketing (all variable) 12.00 6.00 9 15.00 11.00 10 Total costs 91.00 58.00 32.00 39.00 $ $ 11 Operating income 12 *Allocated on the basis of machine-hours Choose from any list or enter any number in the input fields and then continue to the next question. Print Done 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.) Model 9 Model 14 x Data Table Contribution margin per unit B 1 Per Unit - Contribution margin per machine hour 2. Model 9 Model 14 $ 130.00 $ 90.00 Body Time, Inc. should produce: 3 Selling price 4 Costs 5 24.00 8.00 O A. Model 9, since this model results in the higher operating income per unit. O B. Model 14, since this model results in the higher contribution margin per machine hour. OC. Model 9, since this model results the higher contribution margin per unit. O D. Both Model 9 and Model 14 since both models provide positive contribution margins Direct material Variable direct manufacturing labor 6 14.00 20.00 7 26.00 13.00 8 Variable manufacturing overhead Fixed manufacturing overhead* Marketing (all variable) 12.00 6.00 9 15.00 11.00 10 Total costs 91.00 58.00 32.00 39.00 $ $ 11 Operating income 12 *Allocated on the basis of machine-hours Choose from any list or enter any number in the input fields and then continue to the next question. Print Done
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