Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Per Unit Model 9 Model 14 Selling price $145.00 $95.00 Costs Direct material 32 16 Direct manufacturing labor 19 21 Variable manufacturing overhead 20 10
Per Unit | |||
Model 9 | Model 14 | ||
Selling price | $145.00 | $95.00 | |
Costs | |||
Direct material | 32 | 16 | |
Direct manufacturing labor | 19 | 21 | |
Variable manufacturing overhead | 20 | 10 | |
Fixed manufacturing overhead* | 7 | 3.5 | |
Marketing (all variable) | 20 | 8 | |
Total cost | 98 | 58.5 | |
Operating income | $47.00 | $36.50 | |
*Allocated on the basis of machine-hours | |||
please help
Planat Fit Inc. . produces two basic types of weight-iting equipment, Model 9 and Modsl 14. Pertinent dats are as foll (Click the con to vew the data ) at fual capacity Both products ane processed The weight-litng craze suggests that Planet Fit can sell enough of ether Model 9 ar Model 14 to keep the psant operating through the same production departments Requirement Which product should the company produce? Briefly explain your answer Before deermining wtich products 1o produce, let's calculate the contritbution margi the amounts to the nearest cent) n per unt and the contnbution margin per machine hour for each machine. (Enter Model 9 Model 14 Contribution margin per unn Contribution margin per machine hour Planet Fit, Inc. should produce: A. Model 14, since this model results in te hgher contribution margn per machine hour B C. Both Model 9 and Model 14 sice both models prowde postre cartrbution margns D. ull ,stive co but Model 9, srce this model results in the higher operating income per urt Model 9, since this model results rte higher contbunan margn per urutStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started