Doggie Pals produces 110 000 dog collars each month that give off a fresh scent to...

Doggie Pals produces 110 000 dog collars each month that give off a fresh scent to keep your dog smelling clean between baths. Total manufacturing costs are $ 220000. Of this amount, $ 140000 are variable costs. What are the total production costs when 135 000 collars are produced? (Assume both production levels are in the same relevant range. Round intermediate calculations to the nearest cent and the final answer to the nearest dollar.) A. $ 251450 B. $ 171450 C. $ 391450 D. $ 91 450

Expert Solution

The Answer is $ 2,51,450

Variable Cost / Unit = $ 1,40,000 / 1,10,000 Dog Collars

= $ 1.27 / Unit

Fixed Cost = Total Manufacturing cost – Variable cost

= $ 2,20,000 - $ 1,40,000

= $ 80,000

Therefor, Total Production cost for producing 1,35,000 Dog Collars

= ( $ 1.27 x 1,35,000 ) + $ 80,000

= $ 17,1,450 + $ 80,000

= $ 2,51,450

ekkarill92 answered 10 months ago

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