Answer:
The total production costs when 105 comma 000 toys are produced are $467,500
Explanation:
Manufacturing or production costs are the costs which is incurred to Manufacture / produce the products being sold.
Total Manufacturing Cost = $370,000
Variable cost = $130,000
Variable cost per unit = $130,000 / 60,000 = $2.17
Total Fixed Cost = Total Manufacturing cost - Variable cost
Total Fixed Cost = $370,000 - $130,000 = $240,000
Total Production cost = Variable cost + Fixed Cost
Total Production cost = ( 105,000 x 2.17 ) + $240,000
Total Production cost = $227,500 + $240,000 = $467,500
