Selection of most profitable product. 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. Which products should be produced? Briefly explain youranswer.

Per Unit Model 19 Model 14 Selling Price Costs $100.00 $70.00 Direct material 28.00 13.00 Direct manufacturing labor Variable manufacturing overhead* Fixed manufacturing overhead* Marketing (all variable) Total cost 15.00 25.00 25.00 12.50 10.00 5.00 14.00 10.00 92.00 $ 8.00 65.50 Operating income $ 4.50 *Allocated on the basis of machine-hours