Use the Following Scenario to Answer the Questions

Use the following scenario to answer the questions:
Steve 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, Steve sold 1,200 bikes.
-Steve's average variable cost was __________ per bike.

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