K-Too Everwear Corporation oan manufacture mountain dimbing shoes for 33200 per
ID: 1175916 • Letter: K
Question
K-Too Everwear Corporation oan manufacture mountain dimbing shoes for 33200 per pair in variable raw material costs and $22 05 per pair in variable labor expense. The shoes sell for 3130 per pair. Last year produdtion was 100,000 pains Fient op 9 130.000 What were total production costs? (Do not round intermediate caloulations, Round your answer to the nearest whole number, e.o 32) Total production cost What s the marpirnal c.d your anwer to 2 decimal places 806 Marginal cost per What is the avernage ont oer pair? ( decimal places, e.g. 32 16) on mio atocolations, Round your answer to 2 lfthe company is considering oorw.m" orier ?or: an otra "OCO pair%, what is the minimum aooeptable total revenue from thelorri e nu ealeulations Round your answer to the nearest whole number 89 Total revenueExplanation / Answer
Question - 1
What is the total production cost = 8792000 + 1120,000 = 9,912,000
Production = 160,000 units
Variable cost = ( 32 + 22.95) * 160000 = 8792000
Fixed cost = 1120,000
Question - 2
Marginal cost per pair = 32 + 22.95 = 54.95
Question - 3
Average cost per pair = Total cost / number of units = 9,912,000 / 160,000 units = 61.95 per unit
Question - 4
Minimum price = Marginal cost = 54.95
Total revenue = 8000* 54.95 = 439600
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.