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
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