K-too everwear corporation can manufacture mountain, Ask an Expert

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K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.70 per pair in variable raw material costs and $16.95 per pair in variable labor expense. The shoes sell for $126 per pair. Last year, production was 110,000 pairs. Fixed costs were $1,045,000. What were total production costs? What is the marginal cost per pair? What is the average cost per pair? If the company is considering a one-time order for an extra 7,000 pairs, what is the minimum acceptable total revenue from the order?

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Category:- Financial Management
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