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

Accounting

Problem:

K-Too Everwear Corporation can manufacture mountain climbing shoes for $31.90 per pair in variable raw material costs and $22.85 per pair in variable labor expense. The shoes sell for $124 per pair. Last year, production was 100,000 pairs. Fixed costs were $1,030,000.

Requirement:

Question 1: What were total production costs?

Question 2: What is the marginal cost per pair?

Question 3: What is the average cost per pair?

Question 4: If the company is considering a one-time order for an extra 8,000 pairs, what is the minimum acceptable total revenue from the order?

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166893

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