Question 7 10 pts The information through the table of variable costs is the same as in Question 6; the remaining information is independent of information provided in prior questions. Intelligent Components manufactures component parts and subassemblies for laptops. The company's research and development (R&D) and market research teams have been working on the introduction of a new optical drive for Dell-compatible laptops for some time. R&D created several alternative designs for the optical drives. Of those, three were approved for development into prototypes, but only one will be manufactured and sold. Intelligent Components' engineering and accounting staffs have developed these per-unit variable cost estimates for each of the three optical drive designs. Model A Model B Model C Direct materials $ 150 $ 100 $ 114 Direct labor $ 40 $ 50 $ 48 Variable overhead (computed as 250% of direct labor) $ 100 $ 125 $ 120 Marketing $ 140 $ 140 $ 140 Total $430 $415 $ 422 Market research has determined that regardless of the model chosen, the appropriate selling price would be $540 per unit, and that everything manufactured can be sold. R&D estimates that fixed costs will be $3,500,000 regardless of the model chosen. All manufacturing labor is paid at a rate of $8 per hour, but the company has only 600,000 hours of labor available. Which model should Intelligent Components choose to manufacture and sell, and why? O Model C, because it will break even fastest. O Model A, because it has the highest contribution margin given the labor constraint. O Model B, because it has the highest contribution margin per unit Model B, because it requires the most labor hours per unit to produce. Model A, because it uses the highest-quality direct materials. Model C, because 100,000 units can be made given the labor constraint