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Total production costs-k-too everwear corporation

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Reference no: EM132699151

K-Too Everwear Corporation can manufacture mountain climbing shoes for $15.5 per pair in variable raw material costs and $12.11 per pair in variable labor expense. The shoes sell for $119 per pair. Last year, production was 200,000 pairs. Fixed costs were $750,000.

a. What were total production costs?

b. What is the marginal cost per pair?

c. What is the average cost?

d. If the company is considering a one-time order for an extra 14,000 pairs, what is the minimum acceptable total revenue from the order?

Reference no: EM132699151

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