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
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Chapter1: Making Economics Decisions
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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?
$10,950
$9,450
$8,625
$12,500
0
O
Transcribed Image Text: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? $10,950 $9,450 $8,625 $12,500 0 O
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