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?

Question

Business

Miriam Greene

23 October, 03:19

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?

+2

Answers (1)

Know the Answer?

Dylan · Answer 1

amount of the sales is $205000

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