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Chapter 12: Determining the Financing Mix Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished products is $85 per pair. The variable cost for this same pair of shoes is $58. Footwear Inc. incurs fixed costs of $170,000 per year. a. What would be the firm's profit or loss at the following units of production sold: 7,000 pairs of shoes? 9,000 pairs of shoes? 15,000 pairs of shoes? (Find the actual EBIT for each sales). Explain operating leverage effect on profit