Final answer:
The break-even point can be determined by setting the net sales per hour equal to the total cost per hour. The equation to solve for the break-even point is $200x = $1,320x. By dividing both sides of the equation by $1,320, we can find the value of x, which represents the number of hours per month the store needs to be open to break even.
Step-by-step explanation:
To determine the break-even point, we need to find the number of hours per month the store needs to be open in order to cover all its costs. The total cost for each hour the store is open is the sum of the rent and the employee salary. So, the total cost per hour is $1,200 + $120 = $1,320. The break-even point is reached when the net sales per hour equals the total cost per hour:
Net sales per hour = Total cost per hour
In this case, the net sales per hour is $200, so we can set up the equation:
$200x = $1,320x
where x represents the number of hours per month the store is open. By dividing both sides of the equation by $1,320, we can solve for x:
$200 = $1,320x / $1,320
$200 / $1,320 = x
x = 0.1515...
So, the break-even point is approximately 0.1515... hours per month, or about 9.09 minutes per month.