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K-Too Everwear Corporation can manufacture mountain climbing shoes for $16.15 per pair in variable raw material costs and $16.36 per pair in variable labor expense.
K-Too Everwear Corporation can manufacture mountain climbing shoes for $16.15 per pair in variable raw material costs and $16.36 per pair in variable labor expense. The shoes sell for $124 per pair. Last year, production was 120,000 pairs. Fixed costs were $850,000. |
a. What were total production costs? |
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b. What is the marginal cost per pair? |
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c. What is the average cost? |
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d. If the company is considering a one-time order for an extra 10,000 pairs, what is the minimum acceptable total revenue from the order? |
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