Foamsoft Sells Customized Boat Shoes

question 91

Multiple Choice

Foamsoft sells customized boat shoes. Currently,it sells 10,000 pairs of shoes annually at an average price of $70 a pair. It is considering adding a lower-priced line of shoes which sell for $50 a pair. Foamsoft estimates it can sell 5,000 pairs of the lower-priced shoes but will sell 1,000 less pairs of the higher-priced shoes by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced shoes?

• A) $130,000
• B) $200,000
• C) $243,000
• D) $252,000
• E) $273,000

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Definitions:

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