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

The weight-lifting craze is such that enough of either Model 9 or Model 14 can be sold to keep the plant operating at full capacity. Both products are processed through the same production departments.
REQUIRED
Which products should be produced? Briefly explain your answer.

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Per Unit Model 9 Model 14 Sales price Costs $110.00 S77.00 Direct materials Direct manufacturing labour Variable manufacturing overhead Fixed manufacuring overhead Marketing costs (all variable) 30.80 16.50 27.50 11.00 15.40 S101.20 S 8.80 14.30 27.50 13.75 5.50 11.00 S72.05 S 4.95 Total costs Operating Income Allocated on the basis of machine-hours.