Question

Steve owns a bike store. his total costs are $1.2 million per year. last year, steve sold 1,200 bikes. steve's average total cost was ________ per bike.

Answer 1

Steve owns a bike store, his total costs are $1.2 million per year. Last year, Steve sold 1,200 bikes. Steve's average total cost was $1,000 per bike.

To solve: take the total costs of $1.2 million and divide it by the number of bikes sold, $1,200
Average total cost = 1,200,000/1,200
Average total cost = $1,000