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Business, 26.11.2020 18:50 Lonzo2

K-Too Everwear Corporation can manufacture mountain climbing shoes for $25.75 per pair in variable raw material costs and $17.00 per pair in variable labor expense. The shoes sell for $132 per pair. Last year, production was 140,000 pairs. Fixed costs were $1,090,000. Required:
a. What were total production costs?
b. What is the marginal cost per pair?
c. What is the average cost per pair?
d. If the company is considering a one-time order for an extra 4,000 pairs, what is the minimum acceptable total revenue from the order?

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