Ayayai Corporation makes two products, footballs and baseballs. Additional information follows:FootballsBaseballsUnits2,0002,500Sales$48,000$20,000Variable costs19,20011,000Fixed costs8,0004,200Net income$20,800$4,800Yards of leather per unit1.250.30Net income per unit$10.40$1.92Unit contribution margin$14.40$3.60Assume that Ayayai is able to order an additional 2,000 yards of leather and wishes to maximize its net income. Of the additional unitsit produces, at least 400 of each product are necessary for sales.How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to Odecimal places, e.g. 5,275.)

Optimal Production MixFootballs: 400 unitsBaseballs: 400 units + 4600 units = 5000 unitsAsk your…

Answered: Ayayai Corporation makes two products,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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