Problem:
Mountain Gear can manufacture mountain climbing shoes for $14.95 per pair in variable raw material cost and $18.46 per paid in variable labor costs. The shoes sell for $127 per pair. Last year, production was 170,000 pairs and fixed costs were $830,000.
Required:
Question: What is the minimum acceptable total revenue the company should accept for a one-time order for an extra 10,000 pairs?
A. $149,500
B. $287,600
C. $334,100
D. $380,211
E. $1,164,100
Note: Show supporting computations in good form.