Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.93 per pair in variable raw material costs and $25.35 per pair in variable labor expense. The shoes sell for $128 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,060,000. 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 9,000 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. Minimum total revenue
Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.93 per pair in variable raw material costs and $25.35 per pair in variable labor expense. The shoes sell for $128 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,060,000. 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 9,000 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. Minimum total revenue
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![Problem 11-2 Computing Average Cost [LO3]
Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.93 per
pair in variable raw material costs and $25.35 per pair in variable labor expense. The
shoes sell for $128 per pair. Last year, production was 120,000 pairs. Fixed costs were
$1,060,000.
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 9,000 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. Minimum total revenue](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d4269b2-26fe-469f-bc3f-af79183372f0%2F8c7f08ae-71db-48fa-97a0-7d3e069abe8f%2Ffmszquh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 11-2 Computing Average Cost [LO3]
Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.93 per
pair in variable raw material costs and $25.35 per pair in variable labor expense. The
shoes sell for $128 per pair. Last year, production was 120,000 pairs. Fixed costs were
$1,060,000.
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 9,000 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. Minimum total revenue
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