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-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?

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The Answer of 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-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?

Situation 21-1 Diane's Donuts Will Begin Selling Donuts Next Week