We appreciate your visit to Diamond Boot Factory normally sells its specialty boots for 25 a pair An organization hosting a national event in Norfolk has offered to buy the. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
the differential income per pair of boots from accepting the special offer would be $7.
To determine the differential income or loss per pair of boots from accepting or rejecting the special offer, we need to compare the costs and revenues associated with the offer and the organization's normal selling price.
Normal Selling Price: $25 per pair
Special Offer:
- Buying price: $10 per pair
- Cost of special stitching: $3 per pair
Differential Income or Loss per Pair of Boots:
Revenue from a special offer: $10 per pair
Cost of special stitching: $3 per pair
Differential Income or Loss per Pair of Boots = Revenue - Cost
Differential Income or Loss per Pair of Boots = $10 - $3
Differential Income or Loss per Pair of Boots = $7
Therefore, the differential income per pair of boots from accepting the special offer would be $7.
Now, to determine whether Dumond Boot Factory should accept or reject the special offer. The given statement ends abruptly, and there is no specific information provided about the organization hosting a national event in Norfolk or the applicable cost per boot. To make a decision, additional details about the costs, the potential volume of sales, and other relevant factors would be necessary.
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