Please show your work. Thank you! The following information is available for Diva...
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The following information is available for Diva Footwear's segments: Platform Shoes Athletic Shoes Boots Sales $120,000 $420,000 $360,000 Variable costs 64,000 220,000 140,000 Contribution margin 56,000 200,000 220,000 Direct fixed costs 45,000 70,000 90,000 Allocated fixed costs 20,000 70,000 60,000 Net income ($ 9,000) $ 60,000 $ 70,000 Diva Footwear normally sells boots for $90 per pair. An exporter has approached Diva about buying 1,000 pairs of boots for a one-time export deal for $85 per pair. Diva can avoid $5.00 per pair of the normal variable cost on this sale, but Diva must pay a fixed cost of $5,000 to have the boots shipped. Diva has the capacity to produce this order, and no regular sales will be affected. What affect will occur on Diva's profits if the order is accepted? Profits will increase by $42,000. Profits will increase by $49,000. Profits will increase by $45,000. Profits will increase by $46,000. Profits will increase by $50,000
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