Requirements

Which product should the company produce? Briefly explain your answer.

Body Fit, 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 Fitcan 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.

Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. $($Reduce the fixed manufacturing overhead to the lowest possible ratio of machine hours in order to calculate the contribution margin per machine hour. Example: $8$:$4$ would be $2$:$1.$ Enter the amounts to the nearest cent.$)$

$\backslash$table$[[,,$Model $9,$Model $14],[,,,],[-,,,],[=,$Contribution margin per unit,,$],[,,,],[=,$Contribution margin per machine hour,,$]]$

Body Fit, 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.