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Sandel Company makes 2 products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 4,000 2,500 Sales $60,000 $25,000 Variable costs 36,000 7,000 Fixed costs
Sandel Company makes 2 products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 4,000 2,500 Sales $60,000 $25,000 Variable costs 36,000 7,000 Fixed costs 9,000 9,000 Net income $15,000 $ 9,000 Profit per unit $3.75 $3.60
a)Sandel has unlimited demand for both products. Therefore, which product should Sandel tell his sales people to emphasize?
b)What is the unit contribution margin for footballs?
c)What is the unit contribution margin for baseballs?
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