The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog be sold for a price of $65. The Three Amigo's total costs are a. $7,500. b. $25,000. c. $32,500. d. $67,500.

Question

Business

Melvin Dominguez

28 June, 05:47

The Three Amigo's company produced and sold 500 dog beds. The average cost of production per dog bed was $50. Each dog be sold for a price of $65. The Three Amigo's total costs are a. $7,500. b. $25,000. c. $32,500. d. $67,500.

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Answers (1)

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Gordon Kelley · Answer 1

option (b) $25,000

Explanation:

Number of dog beds produced and sold = 500

The average cost of production per dog bed = $50

Selling price of each dog bed = $65

Now,

Average cost = [ Total cost ] : [ Number of units produced ]

or

$50 = Total cost : 500

or

Total cost = 500 * $50

or

Total cost = $25,000

Hence,

The answer is option (b) $25,000