Question 25 (1 point) BIRKENSTOCK CVP PROBLEM: Birkenstock is considering adding a new Big Buckle sandal to its current product offerings. Birkenstock initially anticipates pricing the shoes at $135 per pair and selling 40,000 pairs. The variable costs to produce one pair are estimated to be: $20 per pair direct materials: $25 per pair direct labor: $5 per pair shipping costs and $5 per pair miscellaneous overhead. The fixed costs for this line of shoes are: $50,000 advertising/promotion; $150,000 manufacturing plant manager salary: $300,000 depreciation expense on manufacturing equipment: and $50,000 other miscellaneous fixed costs POSSIBLE ALTERNATIVE PRICING: Birkenstock's marketing team estimates that if they increase the product's price to $150 per pair, they will sell 20% fewer pairs of Big Buckle sandals. If Birkenstock wants to maximize expected profit, should they continue to price the sandals at $135 per pair or $150 per pair? Birkenstock should price the sandals at $150 per pair Birkenstock should price the sandals at $135 per pair