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Calculate contribution margin to determine the best product

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Reference no: EM13524968

Sam company makes 2 products, footballs and baseballs. additional information follows:

units 4,000(footballs) 2,500(Baseballs)
sales 60,000(footballs) 25,000(baseballs)
variable costs 36,000(footballs) 7,00(baseballs)
fixed costs 9,000(footballs) 9,000(baseballs)
net income 15,0000(footballs) 9,000(baseballs)

Profit per unit 3.75(footballs) 3.60(baseballs)

instructions: Sam has unlimited demand for both products. Therefore, which product should Sam tell his sales people to emphasize? Calculate contribution margin to determine the best product.

Reference no: EM13524968

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