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Your company makes shoes. Your marketing person tells you if you sell your shoes at $200 a pair you can sell 1000 pairs of shoes

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Your company makes shoes. Your marketing person tells you if you sell your shoes at $200 a pair you can sell 1000 pairs of shoes a month. If you sell your shoes at $140 a pair you can sell 2000 pairs a month. Your financial person advises you can produce 1000 pairs of shoes a month with equipment that would cost you $20,000 per month, but to produce 2000 pairs per month you will need equipment that would cost you $80,000 per month. At the lower production volume, your direct manufacturing costs would be $80 per pair of shoes. At the higher production volume, your direct manufacturing costs would be $40 per pair of shoes. Would you choose to produce 1000 pairs per month or 2000 pairs? (16 points). Explain. What might cause you to change your mind? (4 points) Explain

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