What is the total cost if producing 27 units of product A at $50, 56 units of product B at $150, and 78 units of product C at $375, with a 30% markup?

What is the total cost if producing 27 units of product A at $50, 56 units of product B at $150, and 78 units of product C at $375, with a 30% markup?

• A. 50,700
• B. 40,500
• C. 60,000
• D. 45,200

Answer: (A)

To calculate the total cost of producing the units and applying the markup, we first need to find the total costs of products A, B, and C before the markup. For product A, the cost is $50 per unit, so for 27 units, the total cost is: 27 units × $50/unit = $1,350. For product B, the cost is $150 per unit, so for 56 units, the total cost is: 56 units × $150/unit = $8,400. For product C, the cost is $375 per unit, so for 78 units, the total cost is: 78 units × $375/unit = $29,250. Now, we sum these total costs to find the combined cost of all products: $1,350 (product A) + $8,400 (product B) + $29,250 (product C) = $39,000. Next, we need to apply the 30% markup to this total cost. A 30% markup means increasing the original cost by 30% of itself: 30% of $39,000 is $11,700, calculated as: 0.30 × $39,000 = $11,700.

To calculate the total cost of producing the units and applying the markup, we first need to find the total costs of products A, B, and C before the markup.

For product A, the cost is $50 per unit, so for 27 units, the total cost is:

27 units × $50/unit = $1,350.

For product B, the cost is $150 per unit, so for 56 units, the total cost is:

56 units × $150/unit = $8,400.

For product C, the cost is $375 per unit, so for 78 units, the total cost is:

78 units × $375/unit = $29,250.

Now, we sum these total costs to find the combined cost of all products:

$1,350 (product A) + $8,400 (product B) + $29,250 (product C) = $39,000.

Next, we need to apply the 30% markup to this total cost. A 30% markup means increasing the original cost by 30% of itself:

30% of $39,000 is $11,700, calculated as:

0.30 × $39,000 = $11,700.