Product Decisions
Not what you're looking for? Search our solutions OR ask your own Custom question.
Sports 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
If Sports has unlimited demand for both products, which product should Sports Company emphasize?
© BrainMass Inc. brainmass.com December 15, 2022, 7:59 pm ad1c9bdddfhttps://brainmass.com/economics/demand-supply/product-decisions-264428
Solution Preview
If Sports has unlimited demand for both products, which product should Sports Company emphasize?
For this we should calculate Contribution Margin ...
Solution Summary
Response discusses the steps to evaluate product decisions.
$2.49