Body Fit, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent...

 

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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 Fit can 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. Read the requirements. 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.) Model 9 = Contribution margin per unit = Contribution margin per machine hour Model 14 Data table 1 2 3 Selling price 4 Costs 5 6 7 A 8 9 10 *** Direct material Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead* Marketing (all variable) Total costs 11 Operating income 12 *Allocated on the basis of machine-hours Print $ Per Unit Model 9 110.00 $ $ B Done 21.00 C 10.00 10.00 6.50 11.00 58.50 51.50 $ - X Model 14 75.00 16.00 22.00 5.00 3.25 14.00 60.25 14.75 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 Fit can 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. Read the requirements. 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.) Model 9 = Contribution margin per unit = Contribution margin per machine hour Model 14 Data table 1 2 3 Selling price 4 Costs 5 6 7 A 8 9 10 *** Direct material Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead* Marketing (all variable) Total costs 11 Operating income 12 *Allocated on the basis of machine-hours Print $ Per Unit Model 9 110.00 $ $ B Done 21.00 C 10.00 10.00 6.50 11.00 58.50 51.50 $ - X Model 14 75.00 16.00 22.00 5.00 3.25 14.00 60.25 14.75

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1 Calculate the contribution margin per unit For Model 9 Contribution marg... View the full answer