Question

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?

Answer 1

The total cost per pair of shoes for Concord Corporation, given the provided costs and planned production of 4,000 pairs, is $84.

Step-by-step explanation:

The student has asked to calculate the total cost per pair of shoes for Concord Corporation based on the provided cost information and planned production. To find the total cost per pair, we need to sum up all variable and fixed costs and divide by the number of pairs produced. The total variable costs are the sum of variable manufacturing costs and variable selling and administrative costs which equals $36,000 + $20,000 = $56,000. The total fixed costs are the sum of fixed manufacturing costs and fixed selling and administrative costs which equals $160,000 + $120,000 = $280,000. The total costs are therefore $56,000 + $280,000 = $336,000. Since the planned production and sales are for 4,000 pairs of shoes, the total cost per pair is $336,000 / 4,000 pairs = $84 per pair.

Answer 2

The cost per pair of shoes is $84

Step-by-step 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