CONFIDENTAL

Question $6(7$ marks; $12\mathrm{.}6$ minutes$)$

Bodybuikders, Inc., produces two basic types of weightlifling equipment, Model $9$ and Model $14.$ Pertinent dala are as follows:

$\backslash$table$[[,$Per unit$],[,$Model $9,$Model $14],[$Selling price,R$1000\mathrm{.}00,$R$700\mathrm{.}00],[$Costs:$,,],[$Direct material,R$260\mathrm{.}00,$R$130\mathrm{.}00],[$Direct labour,R$150\mathrm{.}00,$R$250\mathrm{.}00],[$Variable overhead$*,$R$250\mathrm{.}00,$R$125\mathrm{.}00],[$Fixed overhead",R$100\mathrm{.}00,$R$50\mathrm{.}00],[$Variable marketing,$-$ R$14\mathrm{.}00,$R$100\mathrm{.}00],[$Total costs,R$920\mathrm{.}00,$R$665\mathrm{.}00],[$Operating income,RBD$\mathrm{.}00,$R$45\mathrm{.}00]]$

Alocates on the bess of machinohruss.

The waightlifting craze is such that enough of either Slodel $9$ or Model $14$ can be sold to keep the plant operating at full capacily. Both products are processed through the same production departments.

Required:

$6\mathrm{.}1$ Which products should be produced?

$(7)$