Question

A bicycle store costs ​$2250 per month to operate. The store pays an average of ​$40 per bike. The average selling price of each bicycle is ​$70. How many bicycles must the store sell each month to break​ even?

Answer 1

75

Explanation:

Given That :

Operation cost = $2250 per month

Purchase price per bike = $40

Average selling price per bike = $70

How many bicycles must the store sell each month to break even ;

Break even point = point at which there is net profit / loss = 0

Let number of bicycles store must sell = x

Operation cost + (purchase price * Number of bicycles) = selling price * Number of bicycles

2250 + 40x = 70x

2250 = 70x - 40x

2250 = 30x

x = 2250 / 30

x = 75

To break even 75 bicycles must be sold