Question

A bicycle store cost $2400 per month to operation. Do you store pays an average of $60 per bike do you store pays an average of $60 per bike. The average selling price of a bicycle is $120. How many bicycles master store sell each month to break even?

Answer 1

Profit per bike = sale price minus cost or $120 - $60 = $60
$2400 overheard per month / $60 profit per bike = 40 bikes to pay overhead.