If Babette's Bicycle Shop Can Rebuild Three Bicycles for $200

question 39

Multiple Choice

If Babette's Bicycle shop can rebuild three bicycles for $200 and four bicycles for $240,then the average variable cost of four bicycles

• A)equals $40
• B)cannot be determined without more information
• C)equals $60
• D)equals $240
• E)equals $10

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Definitions:

Rate of Interest

The percentage charged on a loan or paid on savings over a period of time, indicating the cost of borrowing or the gain on savings.

Invested

Refers to funds that have been allocated into assets or projects with the expectation of earning a return.

Worth

The total value of all financial and non-financial assets owned by an individual or business minus any liabilities.

One-time Investment

An investment made in a lump sum, as opposed to investing in smaller, incremental amounts over time.