Billy's Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of productio

Question

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Billy's Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of productio

n for each unit of output produced was $100. The price for each of the 275 units sold was $95. Total profit for Billy's Bean Bag Emporium would bea. -$3,875.b. $26,125.c. $28,500.d. $30,000.

Social Studies

1 answer:

malfutka [58] · Answer 1 · 2022-05-21T13:09:24+03:00

Answer:

The correct answer is A) -$3,875

Explanation:

Total profit is equal to total revenue minus total costs

Revenue

Sales Revenue = 275 units sold x $95 sale price

= $26,125

Expenses

Production costs = 300 units produced x $100 cost per unit

= $30,000

Total profit

$26,125 - $30,000 = $-3,875