Use the Following Scenario to Answer the Questions

question 103

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 total cost was __________ per bike.

• A) $625
• B) $1,000
• C) $375
• D) $1,200
• E) $600

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Definitions:

Enterprising

Showing initiative, willingness to undertake new ventures; having an entrepreneurial spirit.

Conventional

Pertaining to common practices, methods, or standards accepted by a large group or society.

Agentic Professions

Occupations that are associated with getting things accomplished.

Communal

Pertaining to or shared by the members of a community; often refers to resources or responsibilities held in common.