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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?

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 10,000 pairs, what is the minimum acceptable total revenue from the order?

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