Foamsoft sells custom boat shoes. He currently sells 16,850 pairs of shoes a year at an average price of $79 a pair. He is considering adding a lower-priced line of shoes, but it will sell for $49 a pair. Foamsoft estimates that it can sell 5,000 pairs of lower-priced shoes, but it will sell 1,250 fewer pairs of higher-priced shoes by doing so. What is the estimated value of the erosion cost to be charged to the lowest priced shoe project?

Answer rating: 100% (QA)

The estimated erosion cost can be calculated by multiplying the reducti... View the full answer