Diamond Boot Factory Normally Sells Their Specialty Boots for $375

question 111

Essay

Diamond Boot Factory normally sells their 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.Determine the differential income or loss per pair of boots from selling to the organization.

Explain the measures of income inequality, including the Gini ratio and the Lorenz curve.

Explore the factors contributing to growing income inequality in the United States.

Know the demographics of poverty within the United States, including who is most affected.

Describe how time affects income inequality and understand social insurance programs in the United States.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the firm's operating cycle if longer.

Current Liabilities

Short-term financial obligations due within one year, including accounts payable, short-term loans, and accrued expenses.

Cash Coverage Ratio

A liquidity ratio that measures a company’s ability to pay off its debt obligations with its cash and cash equivalents.

Tax Rate

The percentage of income or value of a transaction that is required to be paid as tax to a governmental authority.