Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be $0.25. She has paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 22-1. What will Diane's total variable costs be if she sells 34,500 donuts in one year?

Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be $0.25. She has paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 22-1. What will Diane's total variable costs be if she sells 34,500 donuts in one year?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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