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Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Units Sales Variable costs Fixed costs Net income Yards of leather per unit Profit
Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Units Sales Variable costs Fixed costs Net income Yards of leather per unit Profit per unit Contribution margin per unit Footballs 2,000 $60,000 24,000 10,000 $26,000 1.25 $13.00 $18.00 Baseballs 2,500 $25,000 13,750 5,250 $6,000 0.30 $2.40 $4.50 Assume that Gallery is able to order an additional 2,500 yards of leather and wishes to maximize its income. Of the additional units it produces, at least 500 of each product are necessary for sales. How many units of each must be produced? Footballs Baseballs Units produce
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