Selection of most profitable product Java Fit, Inc., produces two basic types of espresso makers, Model A and Model B. Pertinent data are: Per Unit Model A Model B Selling price $ 150.00 $ 80.00 Costs Direct material 29.00 12.00 Direct 18.00 24.00 manufacturing labor Variable 21.00 10.50 manufacturing overhead* Fixed manufacturing 9.00 4.50 overhead* Marketing (all 10.00 13.00 variable) Total Cost 87.00 64.00 Operating Income $63.00 $16.00 *Allocated on the basis of machine-hours The specialty coffee craze suggests that Java Fit can sell enough of either Model A or Model B to keep the plant operating at full capacity. Both products are processed through the same production departments. Which products should be produced? Show your calculations