Billy's Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was \( \$ 100 \). The price for each of the 275 units sold was \( \$ 95 \). Total profit for Billy's Bean Bag Emporium would be a. \( -\$ 3,875 \). b. \( \$ 26,125 \). c. \( \$ 28,500 \). d. \( \$ 30,000 \).

To calculate the total profit for Billy's Bean Bag Emporium, we can follow these steps: 1. **Calculate Total Revenue**: Total revenue from the 275 chairs sold is \( 275 \times 95 = 26,125 \). 2. **Calculate Total Costs**: Total cost for producing 300 chairs is \( 300 \times 100 = 30,000 \). 3. **Determine Profit**: Profit is given by total revenue minus total costs, which is \( 26,125 - 30,000 = -3,875 \). Therefore, the total profit for the emporium is \( -\$ 3,875 \), so the answer is a. Now, let's explore some additional insights: Claiming the title of Bean Bag Kings in the furniture realm, Billy's Bean Bag Emporium has quite the history! The trend of cozy, versatile seating made from polyester and foam dates back to the late 1960s and early 1970s, when bean bags burst onto the scene as the symbol of casual living. Fast forward to today, and these whimsical pieces are the go-to for college dorms and quirky reading nooks. If you're venturing into the world of business, remember that selling more units doesn’t automatically mean profit! Billy's case showcases the importance of pricing strategy versus production costs. Always check your break-even point before launching a product. A little foresight can save you from the bean bag blues!