K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material...

K-Too Everwear Corporation can manufacture mountain climbing shoes for $43.03 per pair in variable raw material costs and $25.45 per pair in variable labor expense. The shoes sell for $140 per pair. Last year, production was 110,000 pairs. Fixed costs were $1,150,000. What were total production costs? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.) Total production cost $ What is the marginal cost per pair? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Marginal cost per pair $ What is the average cost per pair? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Average cost per pair $ 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. Round your answer to the nearest whole number, e.g., 32.)

Expert Solution

	Variable cost per unit
	Direct labor	43.03
	Direct Material	25.45		NO of units	=	Total variable cost
	Total variable cost per unit	68.48	x	110000	=	$ 7,532,800
	Add: fixed cost					$ 1,150,000
Part 1	Total prodn cost					$ 8,682,800

Part 2	Marginal cost is just its variable cost per uni = $68.48

Part 3	Average cost per unit	8682800÷110000 = $78.93

part 4	Since fixed cost does not change for additional unit of production of 9000 pairs
	Min revenue would be its variable cost = $68.48 x 9000 = $616,320

jeff jeffy answered 1 year ago

K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.00 per pair in variable raw material...

K-Too Everwear Corporation can manufacture mountain climbing shoes for $32.00 per pair in variable raw material costs and $22.95 per pair in variable labor expense. The shoes sell for $136 per pair. Last year, production was 160,000 pairs. Fixed costs were $1,120,000. What were total production costs? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.) Total production cost $ What is the marginal cost per pair? (Do not round intermediate...

2. Computing Average Cost [LO3] K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18 per...

2. Computing Average Cost [LO3] K-Too Everwear Corporation can manufacture mountain climbing shoes for $33.18 per pair in variable raw material costs and $24.36 per pair in variable labor expense. The shoes sell for $170 per pair. Last year, production was 145,000 pairs. Fixed costs were $1,750,000. a. What were the 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...

K-Too Everwear Corporation manufactures two styles of mountain climbing shoes for women: Regular and fashion styles....

K-Too Everwear Corporation manufactures two styles of mountain climbing shoes for women: Regular and fashion styles. A pair of regular style shoes sells for $135, while the fashion style shoes sell for $160 per pair. The variable cost per pair for regular shoes is $38.94, and that for fashion style shoes is $41.5. K-Too Everwear has fixed costs of $1,800,000. K-Too Everwear has the sales mix of 70% and 30% for regular- and fashion-style shoes, respectively. What is K-Too Everwear’s...

Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense.

Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)(Use Excel...

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and...

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)...

. Marathon, Inc. makes and sells dancing shoes. The variable cost per pair to produce is...

. Marathon, Inc. makes and sells dancing shoes. The variable cost per pair to produce is $10 and the selling price is $25 per pair. They currently have 500 pair in inventory from a prior period, valued per GAAP at $15 per pair. If Marathon, Inc. makes 1,000 pairs of dancing shoes and sells 1,500 pairs, what will be the difference in net income between absorption costing and variable costing? A. Net income under variable costing will be $2,500 more...

Aldo's Shoes bought a shipment of 756 pairs of women's shoes for $48 per pair. The...

Aldo's Shoes bought a shipment of 756 pairs of women's shoes for $48 per pair. The store sold 107 pairs at the regular selling price of $159 per pair, 69 pairs at a clearance sale at a discount of 44% and the remaining pairs during an inventory sale at a price that equals cost plus overhead. The store's overhead is 15% of the cost. (a) What was the price at which the shoes were sold during the clearance sale? (b)...

1A) A domestic shoe company distributes running shoes and tennis shoes for $90 per pair to...

1A) A domestic shoe company distributes running shoes and tennis shoes for $90 per pair to it domestic shoe retailers. The marginal cost of producing a pair of running shoes is $50 and the marginal cost of producing a pair of tennis shoes is $45. Ignore any potential issues of bundling the two types of shoes together as part of the sale and any competitive effects that international sales might have on current domestic sales. A Chinese retailer offers to...

"La Yuca" company produces raw material for the alcapurrias industry. It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package.

"La Yuca" company produces raw material for the alcapurrias industry. It has fixed weekly costs of $ 4,000.00 plus variable costs per unit of $ 3.00. The raw material is sold in the market for $ 20.00 per package. a) determine the total cost to produce # 2,000 packages b) determine the cost per unit, average cost, for the # 2,000 packages c) How much can the fixed cost go down if you want to make a profit of $ 3,000.00 per week?

An archaeologist wants to know if raw material used by prehistoric Indians for stone tool manufacture...

An archaeologist wants to know if raw material used by prehistoric Indians for stone tool manufacture us independent of the excavation site. Alpha = .05 Material Site A Site B Total Basalt 731 584 1315 Obsidian 102 93 195 Pedernal chert 510 525 1035 Other 85 94 179 Total 1428 1296 2724 What can you conclude about the results?

Question