Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ojo Outerwear Corporation can manufacture mountain climbing shoes for $ 2 5 . 8 0 per pair in variable raw material costs and $ 1

Ojo Outerwear Corporation can manufacture mountain climbing shoes for $25.80 per pair in variable raw material costs and $17.05 per pair in variable labor expense. The shoes sell for $138 per pair. Last year, production was 100,000 pairs. Fixed costs were $1,135,000.
a. What were total production costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.)
b. What is the marginal cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
c. What is the average cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
d. If the company is considering a one-time order for an extra 7,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

In C language not C++

Answered: 1 week ago