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Dmitry_Shevchenko [17]
3 years ago
10

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]3 years ago
4 0

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

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