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Diamond Boot Factory normally sells its specialty boots for $22 a pair. An offer to buy 90 boots for $15 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $9, and special stitching will add another $3 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. 10 X Loss X Should Diamond Boot Factory accept or reject the special offer? Reject the special offer. X Jacoby Company received an offer from an exporter for 21,700 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 10 Fixed 5 The differential revenue from the acceptance of the offer is a. $868,000 b. $412,300 X c. $43,400 d. $455,700 An 8-year project is estimated to cost $496,000 and have no residual value. If the straight-line depreciation method is used and the average rate of return is 13%, determine the average annual income. $ 64,480 X The expected average rate of return for a proposed investment of $6,870,000 in a fixed asset, using straight-line depreciation, a useful life of 20 years, no residual value, and an expected total income of $20,610,000 over the 20 years, is (round to two decimal places) X a. 15.00% b. 30.00% c. 1.50% d. 60.00%