Question

Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 110 boots for $29 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $13 and special stitching will add another $1 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. The Diamond Boot Company is operating at less than capacity and could accept the offer without disrupting normal operations. Differential per pair of boots from accepting the special order is $fill in the blank 2 .

Answer 1

Answer:

Since there is no loss occur from these sales and rather $15 per pair is profit from the sale of boots. So it should be accepted.

Explanation:

Now the calculation of differential income or loss per pair of boots from selling to the organization,