Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Diamond Boot Factory normally sells their specialty boots for $26 a pair. An offer to buy 70 boots for $18 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9 and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number. Differential per pair of boots from accepting the special order is $fill in the blank 2 .

Sagot :

anthougo

Answer:

Diamond Boot Factory

Differential income per pair of boots from accepting the special order is:

= $7.00.

Explanation:

a) Data and Calculations:

Selling price of specialty boots = $26 a pair

Variable cost per boot = $9

Special offer for 70 boots at $18 per pair

Additional stitching cost = $2

Total variable cost for the special order = $11 ($9 + $2)

Revenue from the special order = $1,260 ($18 * 70)

Variable cost for the special order    770 ($11 * 70)

Differential income =                       $490 ($7 * 70)

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.