may i ask the solution of this

Previous Page Next Page Page 1 of 4 Question 1 (10 points) Body-Builders Ltd produces two basic types of weightlifting equipment, Model 9 and Model 14. Pertinent per unit data are as follows: Model 9 Model 14 Special price $150.00 $105.00 Costs Direct materials 42.00 19.50 Direct manufacturing labour 22.50 37.50 Variable manufacturing overhead 37.50 18.75 Fixed Manufacturing overhead* 15.00 7.50 Marketing (all variable) 21.00 15.00 Total cost 138.00 Operating profit 98.25 $12.00 $6.75 *Allocate on the base of machine hours The weightlifting 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. Machine-hours for Model 9 are twice that for Model 14. Required Which products should be produced? Briefly explain your answer. [10 marks]