Leather Head Sports, launched by entrepreneur Paul Cunningham, produces balls for various sports. Selling prices typically range from $ 40 per ball to $ 295 per ball.
1. Identify at least two fixed costs that will not change regardless of how many footballs Leather Head Sports produces.
2. How could overly optimistic sales estimates potentially hurt Paul Cunningham’s business?
3. Explain how cost-volume-profit analysis can help Paul Cunningham manage Leather Head Sports.