Fitness Gym Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows:

	Per Unit
	Model 9	Model 14
Selling Price	$ 105.00	$ 120.00
Costs:
Direct Material	$ 21.00	$ 16.00
Variable Direct manufacturing labor	$ 12.00	$ 20.00
Variable manufacturing overhead	$ 26.00	$ 13.00
Fixed manufacturing overhead	$ 8.00	$ 4.00
Marketing (all variable)	$ 16.00	$ 11.00
Total Costs	$ 83.00	$ 64.00
Operating income	$ 22.00	$ 56.00

Fitness Gym 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.

Requirement: 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
	???
-	???
=	Contribution margin per unit
	???
=	Contribution margin per machine hour

Fitness Gym, Inc. should produce:

A. Model 9, since this model results in the higher contribution margin per unit.

B. Model 9, since this model results in the higher operating income per unit.

C. Both Model 9 and Model 14 since both models provide positive contribution margins.

D. Model 14, since this model results in the higher contribution margin per machine hour