Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs
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Question:
Farm Supply plans to make 10,000 tractors at its plant. Fixed costs are $1,000,000 and variable costs are $500 per tractor. What is the average cost per tractor?
A. $600
B. $500
C. $100
D. $200
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