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 total cost was ________ per bike.

Question

Quizplus · Accepted Answer

The average total cost per bike is calculated by dividing the total costs by the number of bikes sold. $1,200,000 / 1,200 bikes = $1,000 per bike.

Use the Following Scenario to Answer the Following Questions