XYZ corporation produced 300 units of output but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. Each of the 275 units sold was sold for a price of $95. Total profit for the XYZ corporation would be

a. - $3,875.

b. $26,125.

c. $28,500.

d. $30,000.

profit = - $3875

so correct option is a. - $3,875

Explanation:

given data

produced = 300 units

sold = 275 units

average cost of production = $100

each 275 units sold price = $95

to find out

Total profit

solution

we know that profit is express as

profit = total revenue - total cost ... 1

here total revenue = 275 * $95

total revenue = $26125

and total cost = 300 * $100

total cost = $30000

so from equation 1

profit = total revenue - total cost

profit = $26125 - $30000

profit = - $3875

so correct option is a. - $3,875