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.