Answered step by step
Verified Expert Solution
Question
1 Approved Answer
K-Too Everwear Corporation can manufacture mountain climbing shoes for $19.65 per pair in variable raw material costs and $18.63 per pair in variable labor expense.
K-Too Everwear Corporation can manufacture mountain climbing shoes for $19.65 per pair in variable raw material costs and $18.63 per pair in variable labor expense. The shoes sell for $150 per pair. Last year, production was 130,000 pairs. Fixed costs were $830,000.
K-Too Everwear Corporation can manufacture mountain climbing shoes for $19.65 per pair in variable raw material costs and $18.63 per pair in variable labor expense. The shoes sell for $150 per pair. Last year, production was 130,000 pairs. Fixed costs were $830,000. 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 9,000 pairs, what is the minimum acceptable total revenue from the orderStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started