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Shiny Mane Brushes produces a premium hairbrush. Total manufacturing costs are $ 280 comma 000 when 25 comma 000 brushes are produced. Of this​ amount, total variable costs are $ 118 comma 750. What are the total production costs when 35 comma 000 hairbrushes are​ produced? Assume the same relevant range.

Respuesta :

Answer:

$327,500

Explanation:

The computation of the total product cost is shown below:

= Fixed manufacturing cost + variable manufacturing cost

where,

Variable manufacturing cost is

= $118,750 ÷ 25,000 brushes × 35,000 brushes

= $166,250

And, the fixed manufacturing cost is

= $280,000 - $118,750

= $161,250

So, the total production cost is

= $166,250 + $161,250

= $327,500

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