Walks Softly,Inc

Walks Softly,Inc. sells customized shoes. Currently,it sells 10,000 pairs of shoes annually at an average price of $68 a pair. It is considering adding a lower-priced line of shoes which sell for $49 a pair. Walks Softly estimates it can sell 5,000 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?

A) $177,000
B) $245,000
C) $313,000
D) $789,000
E) $857,000

Correct Answer:

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