Reference no: EM132565445

Gallery Corporation makes two products, footballs and baseballs. Additional information follows:

                                                          Footballs                     Baseballs

Demand (Units)                               2,000                      3,000

Selling price per unit                             $30                          $8

Total Variable costs per unit                      $ 12                       $ 4

Fixed costs                                           10,000                        5,250

Yards of leather per unit                              1.25                           0.25

Direct labor hours required per unit                   0.75                               1.0

Management accounting department further informed that 2,500 yards of leather and 5000 direct labor hours are available

Required:

Question a. Identify the limiting factor, if any.

Question b. Develop the best sales/production mix for Gallery Corporation for the given scenario to optimize profit