Determine minimum acceptable total revenue


K-Too Everwear Corporation can manufacture mountain climbing shoes for $31.85 per pair in variable raw material costs and $22.80 per pair in variable labor expense. The shoes sell for $145 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,750,000. a. What were total production costs? b. What is the marginal cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16) c. What is the average cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16)) d. 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?

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Finance Basics: Determine minimum acceptable total revenue
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