A bicycle store costs $1500 per month to operate. The store pays an average of $70 per

Question

bike. The average selling price of each bicycle is $100. How many bicycles must the
store sell each month to break even?
The store must sell
bicycles each month to break even.

Answer 1

To break even, the store must generate enough revenue to cover its operating costs. The operating costs of the store are $1500 per month.

The store makes a profit of $30 on each bicycle sold ($100 selling price - $70 cost per bike).

To cover the operating costs of $1500, the store needs to sell enough bicycles to generate $1500 in profit.

$1500 / $30 = 50

Therefore, the store must sell 50 bicycles each month to break even.