Computing Average Cost[LO3] K-Too Everwear Corporation can manufacture mountain

Question

Computing Average Cost[LO3] K-Too Everwear Corporation can manufacture mountain climbing shoes for $31.85 per pair in variable raw material costs and $22.80 per pair in variable labor expense The shoes sell for $145 per pair. Last year, production was 120,000 pairs Fixed costs were $1,750,000 What were total production costs? What is the marginal cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16)) What is the average cost per pair? (Round your answer to 2 decimal places. (e.g., 32.16)) If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order?

Explanation / Answer

a) total production cost = (31.85+22.80)*120000 + $1750000= $8308000

b) marginal cost per pair = (31.85+22.80)= $54.65

c) avg cost per pair = $69.23

d) $(54.65*5000 + 1750000)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.