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Sam company makes 2 products, footballs and baseballs. additional information follows: units 4,000(footballs) 2,500(Baseballs) sales 60,000(footballs) 25,000(baseballs) variable costs 36,000(footballs) 7,00(baseballs) fixed costs 9,000(footballs) 9,000(baseballs)
Sam company makes 2 products, footballs and baseballs. additional information follows: units 4,000(footballs) 2,500(Baseballs) sales 60,000(footballs) 25,000(baseballs) variable costs 36,000(footballs) 7,00(baseballs) fixed costs 9,000(footballs) 9,000(baseballs) net income 15,0000(footballs) 9,000(baseballs) Profit per unit 3.75(footballs) 3.60(baseballs) instructions: Sam has unlimited demand for both products. Therefore, which product should Sam tell his sales people to emphasize? Calculate contribution margin to determine the best product
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