Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.90 per pair in variable raw material costs and $1715 per pair in variable labor expense.

image text in transcribed

K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.90 per pair in variable raw material costs and $1715 per pair in variable labor expense. The shoes sell for $150 per pair. Last year, production was 160,000 pairs. Fixed costs were $1,225,000. a. What were total production costs? (Do not round intermediate calculations and b. What is the marginal cost per pair? (Do not round intermediate calculations and c. What is the average cost per pair? (Do not round intermediate calculations and d. If the company is considering a one-time order for an extra 7,000 pairs, what is the round your answer to the nearest whole number, e.g., 32.) round your answer to 2 decimal places, e.g., 32.16.) round your answer to 2 decimal places, e.g., 32.16.) minimum acceptable total revenue from the order? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Total production cost b. Marginal cost per pair c. Average cost per pair d. Minimum total revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance

Authors: John P. Wiedemer

8th Edition

0324142900, 9780324142907

More Books

Students also viewed these Finance questions

Question

Explain the purpose of common-size financial statements.

Answered: 1 week ago