Steve owns a bike store. His total costs are $1.2 million per year, and his variable costs are $750,000 per year. This means that his fixed costs are:

Name: Steve owns a bike store. His total costs are $1.2 million per year, and his variable costs are $750,000 per year. This means that his fixed costs are:
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Question

Quizplus · Accepted Answer

Fixed costs can be calculated by subtracting variable costs from total costs. Therefore, Steve's fixed costs are $1.2 million - $750,000 = $450,000.

Steve Owns a Bike Store