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The table below shows the production cost information for Raincoat, Inc. Raincoat, Inc.

Production Cost

Raincoats Total cost
0 $50.00 -
1 $55.00 $5.00
2 $57.50 $2.50
3 ? $5.00


What is the total cost of production associated with the 3ʳᵈ raincoat?
a. $62.50
b. $5.00
c. $60.00
d. $2.50

User Luis Liz
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1 Answer

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Final answer:

The total cost of production for the third raincoat is $60.00, which, when combined with the costs of the previous raincoats and fixed cost, leads to a total production cost of $222.50 for three raincoats.

Step-by-step explanation:

The question asks to determine the total cost of production associated with the 3rd raincoat for Raincoat, Inc. Given the cost of the first raincoat is $55 and the second is $57.50, with incremental costs of $5, the pattern suggests that each additional raincoat costs $2.50 more than the previous. Thus, the third raincoat would cost $57.50 + $2.50 = $60.00. The total production cost for three raincoats would include the fixed cost of $50 plus the cumulative production costs of each raincoat ($55 + $57.50 + $60.00), resulting in a total of $222.50.

User Kenny Mann
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