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Mountain Goat Inc. produces mountain climbing gear. The company can manufacture mountain climbing shoes for $17.05 per pair in raw material costs and $10.54 per
Mountain Goat Inc. produces mountain climbing gear. The company can manufacture mountain climbing shoes for $17.05 per pair in raw material costs and $10.54 per pair in labor expense. The shoes sell for $142 per pair. Last year, production was 200,000 pairs, and the fixed costs of producing the shoes were $780,000. Required: (a)What were total production costs? (Do not round your intermediate calculations.) (Click to select) (b)What is the marginal cost per pair? (Do not round your intermediate calculations.) (Click to select) (c) What is the average cost per pair? (Do not round your intermediate calculations.) (Click to select) (d)The company is considering a one-time order for an extra 12,000 pairs. What is the minimum total revenue the firm should accept for producing these extra shoes? (Do not round your intermediate calculations.) (Click to select)
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