Assume that boots normally sell for 90 per pair an

Reference no: EM13573867

Assume that boots normally sell for $90 per pair. An exporter has approached Park about buying 1,000 pairs of boots for a one-time export deal for $80 per pair. Park's variable cost per pair is $35.00, however, $3.00 per unit of the normal variable cost could be avoided on this sale, but Park would have to pay a fixed cost $4,000 to have the boots shipped. Park has capacity to produce this order, and no regular sales will be affected. If Park accepts this order.

Reference no: EM13573867

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