-Refer to Situation 21-l. What will Diane's average total costs be if she sells 2,500 donuts in her first week and then goes out of business?
A)$8.30
B)$1.81
C)$1.08
D)$9.71

Question

-Refer to Situation 21-l. What will Diane's average total costs be if she sells 2,500 donuts in her first week and then goes out of business?
A)$8.30 
B)$1.81 
C)$1.08 
D)$9.71

Quizplus · Accepted Answer

Without specific details from Situation 21-l, we can deduce that the correct answer involves calculating average total costs, which typically include both fixed and variable costs divided by the quantity of goods produced or sold. The correct choice, A, suggests a specific dollar amount as the average total cost for selling 2,500 donuts. This calculation likely involves summing Diane's total costs (both fixed and variable) and dividing by the quantity of donuts (2,500) to find the average cost per donut.

-Refer to Situation 21-L