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A manufacturer of scrapbook kits has a fixed cost of $ 3 0 , 0 0 0 . This manufacturer expects to sell 6 ,

A manufacturer of scrapbook kits has a fixed cost of $30,000. This manufacturer expects to sell 6,000 scrapbooks for $17.50. This price will give the manufacturer a 20 percent markup on price. Calculate the variable costs.
A. $6
B. $5
C. $8.50
D. $9

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