Answer the Following Questions Using the Information Below:
the Following

question 166

Multiple Choice

Answer the following questions using the information below:
The following information pertains to Razor's Corp:
$$\begin{array} { l l } \text { Manufacturing costs } & \$ 135,000 \\\text { Units manufactured } & 15,000 \\\text { Units sold } & 12,000 \text { units sold for } \$ 15 \text { per unit } \\\text { Beginning inventory } & \$ 3,500\end{array}$$
-What is the manufacturing cost for the ending finished goods inventory?

• A) $42,500
• B) $25,500
• C) $18,500
• D) $30,500

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Definitions:

Negative Externality

Occurs when the production or consumption of a good or service imposes costs on third parties who are not involved in the transaction.

Marginal Cost

The financial impact of producing one more unit of a product or service.

Marginal Social Cost

The additional cost incurred by society as a whole due to the production of one more unit of a good or service.

Damage Cost

The monetary cost associated with the harm done to goods in an economy, which can result from disasters, accidents, or intentional acts.