I figured out the first 3, but I don\'t understand how to figure out letter (D).

Question

I figured out the first 3, but I don't understand how to figure out letter (D).

K-Too Everwear Corporation can manufacture mountain climbing shoes for $11.6 per pair in variable raw material costs and $14.23 per pair in variable labor expense. The shoes sell for $138 per pair. Last year, production was 170,000 pairs. Fixed costs were $750,000. Required: (a) What were total production costs? (Do not round your intermediate calculations.) 5,141,100 (b) What is the marginal cost per pair? (Do not round your intermediate calculations.) 25.83 (c) What is the average cost? (Do not round your intermediate calculations.) 3024 (d) If the company is considering a one-time order for an extra 13,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round your intermediate calculations.)

Explanation / Answer

Solution:

Revenue = Order * Marginal cost

= 13000 * 25.83

= $335790

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