Peppers Lockdown produces keys for homes and cars. As Peppers planned for next year’s production, the company decided to implement a high-low system to forecast future costs. With total production of 2,500,000 keys at a total cost of $10,000 in 2015, and total production of 3,000,000 keys at a total cost of $20,000 in 2016, what is the variable cost per key?
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