The current cost function for a lab that evaluates Pap smears is C = 200,000 + 25
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The current cost function for a lab that evaluates Pap smears is C = 200,000 + 25 × Q. Q, the annual volume of tests, is forecast to be 30,000. The incremental cost is $25 because each evaluation requires $20 worth of a technician’s time and $5 worth of supplies. Calculate the average cost of an evaluation.
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