Wednesday 9 July 2014

K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material costs and $25.45 per pair in variable labor expense. The shoes sell for $140 per pair. Last year, production was 110,000 pairs. Fixed costs were $1,150,000.

K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material costs and $25.45 per pair in variable labor expense. The shoes sell for $140 per pair. Last year, production was 110,000 pairs. Fixed costs were $1,150,000.

What were total production costs?

  Total production cost $  

What is the marginal cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16))

  Marginal cost per pair $  

What is the average cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16))

  Average cost per pair $  
   
If the company is considering a one-time order for an extra 9,000 pairs, what is the minimum acceptable total revenue from the order?
  
  Total revenue $  


Explanation:

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