Situation 21-1 Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be constant at $0.30. She has already paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 21-1. What will Diane's total costs be if she sells 2,500 donuts in her first week and then goes out of business? O a. $20,750 b. $30,500 c. $20,880 d. $10,950

Situation 21-1 Diane's Donuts will begin selling donuts next week. Diane figures that the average variable cost to make each donut will be constant at $0.30. She has already paid $20,000 for the donut-making machinery and one year's rent. Refer to Situation 21-1. What will Diane's total costs be if she sells 2,500 donuts in her first week and then goes out of business? O a. $20,750 b. $30,500 c. $20,880 d. $10,950

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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