Use the following information for questions
Custom Shoes Co. has gathered the following information concerning one model of shoe: $\begin{array}{ll}
\text { Variable manufacturing costs } & \$ 40,000 \
\text { Variable selling and administrative costs } & \$ 20,000 \
\text { Fixed manufacturing costs } & \$ 160,000 \
\text { Fixed selling and administrative costs } & \$ 120,000 \
\text { Investment } & \$ 1,700,000 \
\text { ROl } & 30 \% \
\text { Planned production and sales } & 5,000 \text { pairs }
\end{array}$
-What is the total cost per pair of shoes?
A) $40
B) $68
C) $168
D) $96

Question

Quizplus · Accepted Answer

The total cost per pair of shoes is calculated by adding all the costs (variable and fixed) and then dividing by the number of pairs. Variable manufacturing costs ($40,000) + Variable selling and administrative costs ($20,000) + Fixed manufacturing costs ($160,000) + Fixed selling and administrative costs ($120,000) = $340,000 total costs. Dividing $340,000 by 5,000 pairs gives $68 per pair.

Use the Following Information for Questions Custom Shoes Co -What Is the Total Cost Per Pair of Shoes? A)

Use the Following Information for Questions
Custom Shoes Co -What Is the Total Cost Per Pair of Shoes?
A)