Business
Business, 20.02.2020 20:33, jdkrisdaimcc11

Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,000 pairs of boots for a one-time export deal for $81 per pair. Diva can avoid $3.00 per pair of the normal variable cost on this sale, but Diva must pay a fixed cost of $4,000 to have the boots shipped. Diva has the capacity to produce this order, and no regular sales will be affected. What affect will occur on Diva's profits if the order is accepted?a. Profits will decrease by $10,000
b. Profits will increase by $41,000
c. Profits will increase by $44,000
d. Profits will increase by $48,000

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Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,...

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