Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. Total profit for Billy’s Bean Bag Emporium would be
a. -$3,875.
b. $30,000.
c. $28,500.
d. $26,125.
Answer: a. -$3,875.
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