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Suppose That a Donut Shop Has $1,500 of Variable Costs

Question 65

Multiple Choice

Suppose that a donut shop has $1,500 of variable costs and $2,500 of fixed costs when it produces 1,000 donuts and sells them for $1 per donut.Average total cost is equal to


A) $1.50.
B) $2.00.
C) $4.00.
D) $25.00.

Correct Answer:

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