K-Too Everwear Corporation can manufacture mountain climbing shoes for $42.88 per pair in variable raw material costs and $25.30 per pair in variable labor expense. The shoes sell for $122 per pair. Last year, production was 90,000 pairs. Fixed costs were $1,015,000.
A) What were total production costs?
B)What is the marginal cost per pair?
C)What is the average cost per pair?
D)If the company is considering a one-time order for an extra 6,000 pairs, what is the minimum acceptable total revenue from the order?