Answer:
Total profit is -$3,875
Explanation:
Total Profit = total revenue - total cost
Total cost here is the cost of producing all the bean bag chairs for sale, regardless of whether they are bought or not
Total cost = unit production cost * production quantity = 300 * 100 = $30,000
Total revenue = unit price * quantity of units sold = 275 * 95 = $26,125
Total Profit = $26,125 - $30,000 = -$3,875
Negative profit means the company made a loss. Part of the reason is that unit price is larger than production cost, which is unusual. Check that you got the correct information.
