Use the Following Scenario to Answer the Following Questions

question 9

Multiple Choice

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 fixed cost was ________ per bike.

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