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

---

Definitions:

Mayflower Compact

An early agreement established in 1620 by the Pilgrims aboard the Mayflower to form a crude government and submit to the majority's rule.

House of Burgesses

The first legislative assembly of elected representatives in North America, established in the Colony of Virginia in 1619.

Representative Government

A form of government in which citizens elect officials to create laws and policies on their behalf.

Joint Stock Companies

Businesses owned by shareholders where the stock can be bought and sold on the open market, spreading the risk and profit among many.