Jaime is a baker who produces gourmet doughnuts. He can access labor at a rate of $$2$ per hour, and capital at a rate of $$0\mathrm{.}25$ per machine hour. He produces doughnuts according to

Q $=$ L $+$ K$0\mathrm{.}5.$

If the bakery is operating with an optimal factor allocation, and producing $40$ doughnuts per day, determine the average total cost of a doughnut.

The bakery employs one labourer, Anja, who consumes doughnuts $($d$)$ and other goods $($y$)$ with utility U$($d$,$y$)=$ ed y$.($Assume y is the Marshallian good, with PY$=$$$1).$