Asked by stefanie gacho on Jul 13, 2024
Verified
The Bow Wow company produced and sold 400 dog beds. The average cost of production per dog bed was $40. Each dog bed can be sold for a price of $75. Bow Wow's total costs are
A) $17,500.
B) $16,000.
C) $30,000.
D) $46,000.
Average Cost
The total cost of production divided by the number of units produced, providing a measure of the cost per unit of output.
Total Costs
The complete sum of all expenses, direct and indirect, incurred in the production of goods or services.
- Evaluate the overall income, expenses, and profitability for multiple situations.
Verified Answer
SR
Sonya RobertsJul 13, 2024
Final Answer :
B
Explanation :
The total costs for Bow Wow company can be calculated by multiplying the average cost of production per dog bed ($40) by the number of dog beds produced and sold (400), which equals $16,000.
Learning Objectives
- Evaluate the overall income, expenses, and profitability for multiple situations.