The three amigo’s company produced and sold 500 dog beds. the average cost of production per dog bed was $50. each dog be sold for a price of $65. the three amigo’s total costs are a. $7,500. b. $25,000. c. $32,500. d. $67,500.

option (b) $25,000

Explanation:

Number of dog beds produced and sold = 500

The average cost of production per dog bed = $50

Selling price of each dog bed = $65

Now,

Average cost = [ Total cost ] ÷ [ Number of units produced ]

or

$50 = Total cost ÷ 500

or

Total cost = 500 × $50

or

Total cost = $25,000

Hence,

The answer is option (b) $25,000

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