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Average cost calculations. Abs Health Club has the following cost equation:
Total Costs ¼ $40,000 þ $80n, where n ¼ number of memberships.
a. Calculate Abs's average fixed cost per membership when there are 1,000 memberships.
b. What is the average variable cost per membership when there are 1,000 memberships?
c. Calculate the average cost per membership when there are 1,000 memberships.
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