Fitness Gym, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: E (Click the icon to view the data.) The weight-lifting craze suggests that Fitness Gym 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 the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) of machine hours in order to calcu Model 9 Model 14 O Data Table - Contribution margin per unit B 1 Per Unit - Contribution margin per machine hour Model 9 Model 14 Fitness Gym, Inc. should produce: 3 Selling price 125.00 $ 90.00 O A. Both Model 9 and Model 14 since both models provide positive contribution margins. O B. Model 14, since this model results in the higher contribution margin per machine hour. OC. Model 9, since this model results in the higher contribution margin per unit. O D. Model 9, since this model results in the higher operating income per unit. 4 Costs Direct material 29.00 16.00 Variable direct manufacturing labor 6 12.00 20.00 Variable manufacturing overhead 22.00 7 11.00 8 Fixed manufacturing overhead 12.00 6.00 Marketing (all variable) 15.00 11.00 10 Total costs 90.00 64.00
Fitness Gym, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: E (Click the icon to view the data.) The weight-lifting craze suggests that Fitness Gym 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 the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) of machine hours in order to calcu Model 9 Model 14 O Data Table - Contribution margin per unit B 1 Per Unit - Contribution margin per machine hour Model 9 Model 14 Fitness Gym, Inc. should produce: 3 Selling price 125.00 $ 90.00 O A. Both Model 9 and Model 14 since both models provide positive contribution margins. O B. Model 14, since this model results in the higher contribution margin per machine hour. OC. Model 9, since this model results in the higher contribution margin per unit. O D. Model 9, since this model results in the higher operating income per unit. 4 Costs Direct material 29.00 16.00 Variable direct manufacturing labor 6 12.00 20.00 Variable manufacturing overhead 22.00 7 11.00 8 Fixed manufacturing overhead 12.00 6.00 Marketing (all variable) 15.00 11.00 10 Total costs 90.00 64.00
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![Fitness Gym, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows:
E (Click the icon to view the data.)
The weight-lifting craze suggests that Fitness Gym 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
Model 14
i
Data Table
Contribution margin per unit
A
В
C
1
Per Unit
Contribution margin per machine hour
2
Model 9
Model 14
Fitness Gym, Inc. should produce:
3 Selling price
$
125.00 $
90.00
A. Both Model 9 and Model 14 since both models provide positive contribution margins.
4 Costs
B. Model 14, since this model results in the higher contribution margin per machine hour.
Direct material
29.00
16.00
O C. Model 9, since this model results in the higher contribution margin per unit.
Variable direct manufacturing
6.
labor
12.00
20.00
O D. Model 9, since this model results in the higher operating income per unit.
7
Variable manufacturing overhead
22.00
11.00
Fixed manufacturing overhead*
12.00
6.00
Marketing (all variable)
15.00
11.00
10
Total costs
90.00
64.00
11 Operating income
$
35.00 $
26.00
12 *Allocated on the basis of machine-hours
Print
Done
Choose from any list or enter any number in the input fields and then continue to the next question.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe14fc7e-c7f7-4f40-88d7-9aaf69dc35a7%2F62b0aab2-c379-446f-80a1-804edff95dc2%2Fx97a5n_processed.png&w=3840&q=75)
Transcribed Image Text:Fitness Gym, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows:
E (Click the icon to view the data.)
The weight-lifting craze suggests that Fitness Gym 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
Model 14
i
Data Table
Contribution margin per unit
A
В
C
1
Per Unit
Contribution margin per machine hour
2
Model 9
Model 14
Fitness Gym, Inc. should produce:
3 Selling price
$
125.00 $
90.00
A. Both Model 9 and Model 14 since both models provide positive contribution margins.
4 Costs
B. Model 14, since this model results in the higher contribution margin per machine hour.
Direct material
29.00
16.00
O C. Model 9, since this model results in the higher contribution margin per unit.
Variable direct manufacturing
6.
labor
12.00
20.00
O D. Model 9, since this model results in the higher operating income per unit.
7
Variable manufacturing overhead
22.00
11.00
Fixed manufacturing overhead*
12.00
6.00
Marketing (all variable)
15.00
11.00
10
Total costs
90.00
64.00
11 Operating income
$
35.00 $
26.00
12 *Allocated on the basis of machine-hours
Print
Done
Choose from any list or enter any number in the input fields and then continue to the next question.
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