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Let the cost per candle be x dollars each.
So, the total cost of candles = 5x and the total cost of candle holders = 5 x $3.50 = $17.50
Therefore, the total cost before tax = 5x + $17.50 = $27.50
5x = $27.50 - $17.50
5x = $10
x = $2
Therefore, the cost per candle is $2 each, which corresponds to option A. $2.00.