Question 7 A well-known Canadian shoe company produces and sells shoes to domestic retailers. For one brand of shoe, the company sells 10,000 pairs in the general market and 10,000 pairs to a single customer. The market price is $13 per pair and the price to the single customer is $10 per pair. The production and selling costs are as follows: Variable production cost Variable selling costs $6.50 per pair $1.75 per pair (market sales) S0.75 per pair (single customer) $34.000 $20.000 20,000 pairs Fixed production costs Fixed selling costs Capacity The company is considering not selling the 10,000 pairs to the single customer, but instead also selling these pairs in the general marketplace. It is confident that the market can absorb the additional 10,000 pairs. In order to sell to the general marketplace, the company's variable selling expenses on the additional pairs will be the same as they are now. An increase of $5,000 in fixed selling expenses will also be necessary Required Explain whether the company should stop selling to the single customer and instead sell all 20,000 pairs to the general marketplace. Include supporting calculations