Walks Softly currently sells 14,800 pairs of shoes annually at an average price of $59 a pair.It is considering adding a lower-priced line of shoes that will be priced at $39 a pair.The company estimates it can sell 6,000 pairs of the lower-priced shoes annually but will sell 3,500 less pairs of the higher-priced shoes each year by doing so.What annual sales revenue should be used when evaluating the addition of the lower-priced shoes?
A) $27,500
B) $24,000
C) $31,300
D) $789,100
E) $900,700
Correct Answer:
Verified
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