Mountain Gear Can Manufacture Mountain Climbing Shoes for $37

Multiple Choice

Mountain Gear can manufacture mountain climbing shoes for $37.11 per pair in variable raw material costs and $15.09 per pair in variable labor costs. The shoes sell for $99 per pair. Last year, production was 248,000 pairs and fixed costs were $1.67 million. The maximum production level for the firm given its current assets is 275,000 pairs. What is the minimum acceptable total revenue the company should accept for a one-time order for an extra 12,000 pairs?

A) $611,418
B) $987,600
C) $626,400
D) $947,700
E) $564,100