Minimum acceptable total revenue from order


K-Too Everwear Corporation can manufacture mountain climbing shoes for $24.86 per pair in variable raw materials costs and $14.08 per pair in variable labor expenses. The shoes sell for $135 per pair. Last year, production was 12,000 pairs. Fixed costs were $1,550,000. What is the average cost? 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? Explain?

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Finance Basics: Minimum acceptable total revenue from order
Reference No:- TGS051883

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