Question
K -Too Everwear Corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw matieral costs and $26.45 per pair in variable labor
K -Too Everwear Corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw matieral costs and $26.45 per pair in variable labor expenses. The shoes sell for $165 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order?
Total Costs?
Marginal Cost?
Average cost?
Minimum acceptable revenue?
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