Question
Q) 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
Q) 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 $ 12 $ 4
Fixed costs 10,000 5,250
Yards of leather per unit 1.25 0.25
Direct labor hours required per unit0.75 1.0
Management accounting department further informed that 2,500 yards of leather and 5000 direct labor hours are available
Required:
a.Identify the limiting factor, if any.
b.Develop the best sales/production mix for Gallery Corporation for the given scenario to optimize profit
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