K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.05 per pair in variable raw material costs and $23.00 per pair in variable labor expenses. The shoes sell for $142 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,165,000. 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 5,000 pairs, what is the minimum acceptable total revenue from the order?

K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.05 per pair in variable raw material costs and $23.00 per pair in variable labor expenses. The shoes sell for $142 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,165,000. 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 5,000 pairs, what is the minimum acceptable total revenue from the order?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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K-Too Everwear Corporation can manufacture mountain climbing shoes for $11 per pair in variable raw material costs and $13.34 per pair in variable labor expense. The shoes sell for $126 per pair. Last year, production was 180,000 pairs. Fixed costs were $780,000. 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 13, 000 pairs, what is the minimum acceptable total revenue from the order?
Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.98 per pair in variable raw material costs and $25.40 per pair in variable labor expense. The shoes sell for $134 per pair. Last year, production was 150,000 pairs. Fixed costs were $1,105,000. a. What were total production costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the marginal cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the average cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If the company is considering a one-time order for an extra 6,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Total production cost b. Marginal cost per pair c. Average cost per pair d.…
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Mountain Goat Inc. produces mountain climbing gear. The company can manufacture mountain climbing shoes for $14.9 per pair in raw material costs and $11.81 per pair in labor expense. The shoes sell for $114 per pair. Last year, production was 160,000 pairs, and the fixed costs of producing the shoes were $770,000. Required: (a)What were total production costs? (Do not round your intermediate calculations.) |(Click to select) (b)What is the marginal cost per pair? (Do not round your intermediate calculations.) |(Click to select) (c)What is the average cost per pair? (Do not round your intermediate calculations.) (Click to select) ♥ (d)The company is considering a one-time order for an extra 14,000 pairs. What is the minimum total revenue the firm should accept for producing these extra shoes? (Do not round your intermediate calculations.) |(Click to select)
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