Sheldon Shoes Company makes and sells a variety of leather shoes for children. For its current…

Sheldon Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and sizes, the average selling price and costs per pair of shoes are as follows:

(Click the icon to view the data.) Shoes are manufactured in batch sizes of 100 pairs. Each batch requires 4 machine hours to manufacture. The plant has a total capacity of 5000, machine hours per month, but current monthly production consumes only about 90%of the capacity. A discount store has approached Sheldon to buy 8,000 pairs of shoes next month. It has requested that the shoes bear its own private label. Embossing the private label will cost Sheldon an additional $ 0.30 per pair. However, no variable selling costs will be incurred for fulfilling this special order.


Determine the minimum (floor) price that Sheldon Shoes should charge for this order. What other considerations are relevant to this decision?

First, select the labels then calculate the minimum (floor) price that Sheldon should charge for the new order







Direct materials


Direct labor


Variable manufacturing overhead


Variable selling costs


Fixed overhead


Total costs


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