Concord Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $36000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 4000 pairs What is the total cost per pair of shoes?

Respuesta :

Answer:

The cost per pair of shoes is $84

Explanation:

The cost per pair of shoes=total costs/number of pairs produced

total costs =Variable manufacturing costs +Variable selling and administrative costs+Fixed manufacturing costs +Fixed selling and administrative costs

Variable manufacturing costs $36,000

Variable selling and administrative costs $20000

Fixed manufacturing costs $160000

Fixed selling and administrative costs $120000

total costs= $36,000+$20000+$160000 +$120000

                 =$336,000.00  

number of pairs produced is 4000

Total cost per pair of shoes=$336,000/4000

                                            =$84.00