In the following figure the total cost of producing the 500^th unit of output is ________.

Question

Quizplus · Accepted Answer

To find the total cost of producing 500^th units of output, we need to sum up the costs of each stage of production. Starting from the beginning: - The cost of producing the first stage is 500 * $250 = $125,000 - The cost of producing the second stage is 500 * $375 = $187,500 - The cost of producing the third stage is 500 * $250 = $125,000 - The cost of producing the fourth stage is 500 * $250 = $125,000 Adding up all these costs gives us a total cost of $562,500. However, we need to subtract the salvage value of $50,000, which gives us a final total cost of $512,500. Dividing this by the total units produced (500^th), we get a cost per unit of $1,025. Therefore, the correct answer is C ($212,500).

In the Following Figure the Total Cost of Producing the 500th

In the Following Figure the Total Cost of Producing the 500^th