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4 September, 22:29

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.

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Answers (1)
  1. 4 September, 22:41
    0
    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
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