Fresh Best Friends produces 80,000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths.Total manufacturing costs are $240,000.Of this amount,$180,000 are variable costs.What are the total production costs when 100,000 collars are produced? (Assume both production levels are in the same relevant range.)

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The variable cost per collar is $180,000 / 80,000 = $2.25. For 100,000 collars, variable costs are 100,000 * $2.25 = $225,000. Fixed costs remain $60,000. Total costs = $225,000 + $60,000 = $285,000.

Fresh Best Friends Produces 80,000 Dog Collars Each Month That