As a group, read the short case on Cushion Clogs and respond to the following questions....

 

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As a group, read the short case on Cushion Clogs and respond to the following questions. a. List the variable cost per pair of shoes? Make sure to identify and clearly break down all variable costs on a per pair basis. b. How much overhead per year is Cushion Clogs currently incurring? Based on the case information, is overhead likely to be predominantly fixed or variable? What evidence supports your answer? c. Using your responses to a & b above, how many pairs of shoes would need to be sold to breakeven assuming the selling price is the high end of the Bay's desired range. d. Consider the estimated demand figures for first year sales provided by the Bay. How much profit would Cushion Clogs make under the pricing option in part c? e. What qualitative factors should be considered in the decision to sell to the Bay? As a group, read the short case on Cushion Clogs and respond to the following questions. a. List the variable cost per pair of shoes? Make sure to identify and clearly break down all variable costs on a per pair basis. b. How much overhead per year is Cushion Clogs currently incurring? Based on the case information, is overhead likely to be predominantly fixed or variable? What evidence supports your answer? c. Using your responses to a & b above, how many pairs of shoes would need to be sold to breakeven assuming the selling price is the high end of the Bay's desired range. d. Consider the estimated demand figures for first year sales provided by the Bay. How much profit would Cushion Clogs make under the pricing option in part c? e. What qualitative factors should be considered in the decision to sell to the Bay?