K-Too Everwear Corporation can manufacture mountain climbing shoes for $24.86 per pair in variable raw material costs and $14.08 per pair in variable labor expense. The shoes sell for $135 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,550,000. ,,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 5000 pairs, what is the minimum acceptable total revenue from the order? Explain.
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