Use the Following Scenario to Answer the Questions

question 28

Multiple Choice

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 fixed cost was __________ per bike.

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

---

Definitions:

Reversible Figure

A visual pattern that easily allows more than one interpretation, in some cases changing the specification of figure and ground, in other cases changing the perceived organization in depth.

Lighter

A portable device used to generate a flame for the purpose of lighting something, such as a cigarette or candle.

Darker

Having very little light, not bright, or closer to black in color.

Gestalt Grouping

principles that describe how humans naturally organize visual elements into groups or unified wholes.