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Determine the differential income or loss per pair of boots

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Reference no: EM132530246

Diamond Boot Factory normally sells its specialty boots for $375 a pair. An offer to buy 100 boots for $275 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $250, and special stitching will add another $20 per pair to the cost.

Question 1: Determine the differential income or loss per pair of boots from selling to the organization.

Question 2: Should Diamond Boot Factory accept or reject the special offer?

Reference no: EM132530246

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