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Mountain Gear Can Manufacture Mountain Climbing Shoes for $14

Question 14

Multiple Choice

Mountain Gear can manufacture mountain climbing shoes for $14.95 per pair in variable raw material costs and $18.46 per paid in variable labor costs. The shoes sell for $127 per pair. Last year, production was 170,000 pairs and fixed costs were $830,000. What is the minimum acceptable total revenue the company should accept for a one-time order for an extra 10,000 pairs?


A) $149,500
B) $287,600
C) $334,100
D) $380,211
E) $1,164,100

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