Use the Following Scenario to Answer the Questions That Follow

question 127

Multiple Choice

Use the following scenario to answer the questions that follow.
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)$1,200
• E)$600

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Definitions:

Rebate

A partial refund following the purchase of a product, often used as a purchase incentive.

Discount

A reduction applied to the usual cost of goods or services, typically to encourage purchasing.

Research Evidence

Information and findings gathered through systematic investigation, used to support or refute an argument, hypothesis, or theory.

Trite Expression

A phrase or statement that has been overused to the extent that it loses its originality and impact.