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 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) ♥
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 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) ♥
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
Chapter8: Tactical Decision-making And Relevant Analysis
Section: Chapter Questions
Problem 40E
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