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Body World Inc, (click the icon to view the data ) The weight-ifting craze suggests that Body World can sel enough of either Model 9

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Body World Inc, (click the icon to view the data ) The weight-ifting craze suggests that Body World can sel enough of either Model 9 or Model 14 to keep the plant operasing at full capacity Both products are processed theough the same production departments produces two basic types of weight-ifting equipment, Model 9 and Model 14. Pertinent data are as follows Read the requitements Before detormining which products to produce, let's calkuate the contibution margin per uni and the contribution margin per machine hour totr the amounts to the nearest cent) Model 9 Model 14 Data Table Selling price per unit 120.00 58.00 Variable costs per unit costs per un 41.00 Contribution margin per unit Per Unit Relative use of machine-hours per unit of product Model 9 Model 14 20 S 120 00 5 10500 4700 Selling price - Contribution margin per machine hour Costs Body World, Inc. should produce 1200 3100 Direct material O A. Model 9, since this model results in the higher operating income per unit O B. Model 9, since this model results in the higher contribution margin per unit C. Model 14, since this model results in the higher contribution margin per machine hour O D. Both Model 9 and Model 14 since both models provide postive contribution margins 1700 2200 Variable direct manufacturing labor 8.00 16.00 Variable manufacturing overhead 3.00 6.00 Fixed manufacturing overhead 15.00 16.00 Marketing (all variable) 61.00 85.00 Total costs $ 35.00 $ 44.00 Operating income Allocated on the basis of machine-hours Print Done

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