Southern Ski Company recently expanded its manufacturing capacity to allow it to produce up to 15,000 pairs of water skis of either Model A or Model B. Because the models are very similar, Southern Ski will produce only one of the models. The following information is available: Model A Model B Selling price per pair Variable cost per pair $88.00 $52.80 580.00 552.80 Fixed costs will total $369,600 if Model A is produced but will only be $316,800 if Model B is produced. If the sales department can guarantee the annual sale of 12,000 pairs of skis of either model, Southern Ski will: Select one: O a. be indifferent as to which model is sold because each model has the same variable cost per pair. O b. produce Model A because it is more profitable. O c. produce Model B because it has a lower total fixed cost. O d. be indifferent as to which model is sold because both are profitable