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

Question

Quizplus · Accepted Answer

The total cost of production is 300 units * $100 = $30,000. The revenue from selling 275 units at $95 each is 275 * $95 = $26,125. The profit is revenue minus cost, which is $26,125 - $30,000 = -$3,875.

XYZ Corporation Produced 300 Units of Output but Sold Only