Diamond Boot Factory normally sells their specialty boots for $27 a pair. An offer to buy 105 boots for $19 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.
Diamond Boot Factory normally sells their specialty boots for $27 a pair. An offer to buy 105 boots for $19 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Diamond Boot Factory normally sells their specialty boots for $27 a pair. An offer to buy 105 boots for $19 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.
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