Santana Sports Company produces two products, soccer balls and volleyballs. Both products are extremely popular, and the
Question:
Santana Sports Company produces two products, soccer balls and volleyballs. Both products are extremely popular, and the company can sell as many of either ball as it can produce. Santana Sports, however, can produce only a limited number of balls because only 12,000 direct labor hours are available due to the isolated location of the community. It takes two hours of direct labor to produce a soccer ball and oneand-one-half hours to produce a volleyball. The selling price of a soccer ball is $\$ 34$. and the variable costs are $\$ 20$. The selling price of a volleyball is $\$ 26$, with variable costs of $\$ 14$.
Which product should Santana Sports Company produce if its direct labor hours are limited?
Step by Step Answer:
Survey Of Accounting
ISBN: 9780538846172
1st Edition
Authors: James D. Stice, W. Steve Albrecht, Earl Kay Stice, K. Fred Skousen