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	Per Unit
	Model 9	Model 14
Selling price	$145.00	$95.00
Costs
Direct material	32	16
Direct manufacturing labor	19	21
Variable manufacturing overhead	20	10
Fixed manufacturing overhead*	7	3.5
Marketing (all variable)	20	8
Total cost	98	58.5
Operating income	$47.00	$36.50
*Allocated on the basis of machine-hours

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Planat Fit Inc. . produces two basic types of weight-iting equipment, Model 9 and Modsl 14. Pertinent dats are as foll (Click the con to vew the data ) at fual capacity Both products ane processed The weight-litng craze suggests that Planet Fit can sell enough of ether Model 9 ar Model 14 to keep the psant operating through the same production departments Requirement Which product should the company produce? Briefly explain your answer Before deermining wtich products 1o produce, let's calculate the contritbution margi the amounts to the nearest cent) n per unt and the contnbution margin per machine hour for each machine. (Enter Model 9 Model 14 Contribution margin per unn Contribution margin per machine hour Planet Fit, Inc. should produce: A. Model 14, since this model results in te hgher contribution margn per machine hour B C. Both Model 9 and Model 14 sice both models prowde postre cartrbution margns D. ull ,stive co but Model 9, srce this model results in the higher operating income per urt Model 9, since this model results rte higher contbunan margn per urut

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