Question
K-Too Everwear Corporation can manufacture mountain climbing shoes for $31.90 per pair in variable raw material costs and $22.85 per pair in variable labor expense.
K-Too Everwear Corporation can manufacture mountain climbing shoes for $31.90 per pair in variable raw material costs and $22.85 per pair in variable labor expense. The shoes sell for $124 per pair. Last year, production was 100,000 pairs. Fixed costs were $1,030,000.
What were total production costs?
What is the marginal cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16))
What is the average cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16))
If the company is considering a one-time order for an extra 8,000 pairs, what is the minimum acceptable total revenue from the order?
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