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Use the Following Scenario to Answer the Following Questions

Question 95

Multiple Choice

Use the following scenario to answer the following questions:
Kareem owns a bike store.His total costs are $1.2 million per year,his variable costs are $750,000,and his fixed costs are $450,000 per year.Last year,Kareem sold 1,200 bikes.
-Kareem's average fixed cost was ________ per bike.


A) $600
B) $625
C) $1,000
D) $2,000
E) $375

Correct Answer:

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