Diamond Boot Factory normally sells its specialty boots for $523 per pair. An offer to buy 105 boots for $517 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $59, 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. Should Diamond Boot Factory accept or reject the special offer?

The differential income per pair is negative, which means that Diamond Boot Factory would incur a loss of $45 for each pair of boots sold to the organization. Therefore, it would not be financially beneficial for Diamond Boot Factory to accept the special offer.

To determine the differential income or loss per pair of boots from selling to the organization, we need to calculate the total cost per pair and compare it to the selling price. First, let's calculate the total cost per pair. The variable cost per boot is $59, and the special stitching adds another $3 per pair. Therefore, the total variable cost per pair is $59 + $3 = $62.

Next, we need to calculate the selling price per pair. Diamond Boot Factory normally sells its specialty boots for $523 a pair. However, the organization is offering to buy 105 boots for $17 per pair.

To calculate the differential income or loss per pair, we subtract the total cost per pair from the selling price per pair. In this case, the differential income or loss per pair is $17 - $62 = -$45.

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