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10 of 15 Sarasota Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Variable costs 41,760 23,925 Fixed costs
10 of 15 Sarasota Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Variable costs 41,760 23,925 Fixed costs 17,400 9,135 Net income $45,240 $10,440 Yards of leather per unit 1.25 0.30 Net income per unit $22.62 $4.18 Unit contribution margin $31.32 $7.83 Assume that Sarasota is able to order an additional 4,000 yards of leather and wishes to maximize its net income. Of the addition units it produces, at least 800 of each product are necessary for sales. How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to 0
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