Ernie's Earmuffs Produces 200 Earmuffs Per Year at a Total

Multiple Choice

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed.What is Ernie's average variable cost?

A) $400
B) $8
C) $2
D) $2,400
E) $1,600