Question

Walks Softly sells customized shoes. Currently, it sells 16,000 pairs of shoes annually at an average price of $68 a pair. The company is considering adding a lower-priced line of shoes that will sell for $39 a pair. Walks Softly estimates it can sell 7,000 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?

Answer 1

amount of the sales is $205000

Step-by-step explanation:

given data

sells = 16000 shoes

average price = $68 a pair

lower-priced shoes sells =$39 a pair

sell lower-priced shoes = 7000 pairs

sell higher priced = 1000 pairs

to find out

amount of the sales

solution

we will calculate amount of the sales as given formula that is

amount of the sales = sell lower-priced shoes × lower-priced - sell higher priced × average price

put here all these value we get

amount of the sales = 7000 × 39 - 1000 × 68

amount of the sales = 205000

so here amount of the sales is $205000