Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mountain Gear can manufacture mountain climbing shoes for $22.36 per pair in variable raw material costs and $11.46 per pair in variable labor costs. The
Mountain Gear can manufacture mountain climbing shoes for $22.36 per pair in variable raw material costs and $11.46 per pair in variable labor costs. The shoes sell for $97 per pair. Last year, production was 170,000 pairs and fixed costs were $1.18 million. The maximum production level for the firm given its current assets is 200,000 pairs. What is the minimum acceptable total revenue the company should accept for a one-time order for an extra 15,000 pairs? |
$611,418 |
$987,600 |
$507,300 |
$947,700 |
$1,164,100 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
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