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K-Too Everwear Corporation can manufacture mountain climbing shoes for $10.4 per pair in variable raw material costs and $15.84 per pair in variable labor expense.

K-Too Everwear Corporation can manufacture mountain climbing shoes for $10.4 per pair in variable raw material costs and $15.84 per pair in variable labor expense. The shoes sell for $123 per pair. Last year, production was 140,000 pairs. Fixed costs were $740,000.

a. What were total production costs?

b. What is the marginal cost per pair?

c. What is the average cost?

d. If the company is considering a one-time order for an extra 14,000 pairs, what is the minimum acceptable total revenue from the order?

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