Question

A bicycle store costs $2400 per month to operate. Thee store pays an average of $60 per bike. The average selling price of each bicycle is $120. How many bicycles must the store sell each month to break even?

Answer 1

The number of bicycle that store sell each month to break even is 13 bikes .

Explanation:

Given as :

The operation cost of bicycle store = $2400

The cost of payment by store at average rate = $60 per bike

The average selling price of each bike = s.p = $120 per bike

Let The number of bicycle that store sell each month to break even = n bikes

According to question

The operation cost of bicycle store = (cost of payment by store at average rate + average selling price of each bike ) × number of bicycle that store sell each month to break even

i.e ($60 per bike + $120 per bike) × n bikes = $2400

Or, ($180 per bike) × n bikes = $2400

∴ 180 n = 2400

Or, n =
`(2400)/(180)`

i.e n = 13.333 ≈ 13

So, The number of bicycle that store sell each month to break even = n = 13 bikes

Hence, The number of bicycle that store sell each month to break even is 13 bikes . Answer