Question

A bicycle store costs $3600 per month to operate. The store pays an average of $80 per bike. The average selling price of each bicycle $120. How many bicycles must the store sell each month to break even?

The store must sell ____ bicycles each month to break even.
(Type a whole number)

Answer 1

90 bikes.

Explanation:

The bike store earns:

(120-80) = 40 dollars per bike sold.

Hence, to break even, the store must sell:

3600/40 = 90 bikes per month.

Hope this helped!