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Business, 23.03.2020 21:06 okme

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. What will Diane's approximate average fixed costs be if she sells 36,500 donuts in one year?

A. $0.088
B. $0.30
C. $0.138
D. $0.55

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