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

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Definitions:

Reinforce Your Theme

The practice of consistently supporting and highlighting the central message or idea in a piece of writing, speech, or marketing campaign.

Purpose

The reason behind an action, decision, or creation, outlining the intended goal or objective.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty or reliability.

Presentation Length

The duration or extent of time that a presentation or speech lasts.