Question

14. A new company manufactures tennis rackets. The fixed expenses are $78,490, and the variable expenses are $14 per racket produced. What is the expense of producing 3,500 rackets ?

a. $49,000

b. $81,990

c. $127,490 d. $147,900

Answer 1

c

Explanation:

The expense of producing 3,500 rackets can be calculated as follows:

Total expense = Fixed expenses + Variable expensesFixed expenses = $78,490Variable expenses = $14 per racket produced x 3,500 rackets = $49,000Total expense = $78,490 + $49,000Total expense = $127,490Therefore, the expense of producing 3,500 rackets is $127,490, which is option (c).