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Answer :
The differential income per pair is negative, which means that Diamond Boot Factory would incur a loss of $45 for each pair of boots sold to the organization. Therefore, it would not be financially beneficial for Diamond Boot Factory to accept the special offer.
To determine the differential income or loss per pair of boots from selling to the organization, we need to calculate the total cost per pair and compare it to the selling price. First, let's calculate the total cost per pair. The variable cost per boot is $59, and the special stitching adds another $3 per pair. Therefore, the total variable cost per pair is $59 + $3 = $62.
Next, we need to calculate the selling price per pair. Diamond Boot Factory normally sells its specialty boots for $523 a pair. However, the organization is offering to buy 105 boots for $17 per pair.
To calculate the differential income or loss per pair, we subtract the total cost per pair from the selling price per pair. In this case, the differential income or loss per pair is $17 - $62 = -$45.
You can learn more about selling prices at: brainly.com/question/29065536
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