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    Product Decisions

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    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 ad1c9bdddf
    https://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

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