Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.95 per pair in variable raw material costs and $17.20 per pair in variable labor expense.

K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.95 per pair in variable raw material costs and $17.20 per pair in variable labor expense. The shoes sell for $156 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,270,000.

What were total production costs? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

Total production cost $

What is the marginal cost per pair? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Marginal cost per pair $

What is the average cost per pair? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Average cost per pair $

If the company is considering a one-time order for an extra 4,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

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_2

Step: 3

blur-text-image_3

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

The ImpactAssets Handbook For Investors

Authors: Jed Emerson

1st Edition

1783087293, 978-1783087297

More Books

Students also viewed these Finance questions