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K-Too Everwear Corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw material costs and $26.45 per pair in variable labor
K-Too Everwear Corporation can manufacture mountain climbing shoes for $35.85 per pair in variable raw material costs and $26.45 per pair in variable labor expense. The shoes sell for $165 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? Variable material cost Variable labor cost Sales price Production Fixed costs Extra order SA SA SA $ 35.85 $ 26.45 $ 165.00 145,000 $ 1,750,000 5,000 Complete the following analysis. Do not hard code values in your calculations. Total costs Marginal cost Average cost
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