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Suppose Fixed Costs Are $500, Variable Cost Is $5 Per

Question 18

Multiple Choice

Suppose fixed costs are $500, variable cost is $5 per unit, and step costs are $50 for every 20 unit produced.What is the total cost of producing 25 units?


A) $675
B) $688
C) $725
D) $800
E) $625

Correct Answer:

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