Question
Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Demand (Units)2,000 3,000 Selling price per unit$30$8 Total variable costs per unit$
Gallery Corporation makes two products, footballs and baseballs. Additional information follows:
FootballsBaseballs
Demand (Units)2,000 3,000
Selling price per unit$30$8
Total variable costs per unit$ 12$ 4
Fixed costs10,0005,250
Yards of leather per unit1.250.25
Direct labor hours required per unit0.751.0
Assume that Gallery is able to purchase only 2,500 yards of leather and wishes to maximize its income. Total labor hours available for production is 4,600 hours.
Required:
a.Identify the limiting factor.
b.What will be the sales at which Gallety Corp will be at maximum profit by considering limiting factor.
Please donot copy from any other website I needed unique work and please could you explain in detail (ASAP)
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