A bicycle store costs ​$3400 per month to operate. The store pays an average of ​$40 per bike. The average selling price of each bicycle is ​$80. How many bicycles must the store sell each month to break​ even?

Answer 1

Let's assume the number of bikes to be sold each month to break even is x.
Total cost = fixed cost + variable cost
Total cost = $3400 + ($40 * x)
Total revenue = selling price * number of bikes sold
Total revenue = $80 * x

To break even, total cost = total revenue
$3400 + ($40 * x) = $80 * x

Simplifying the equation, we get:
$3400 + $40x = $80x

Moving all the terms with x to one side, we get:
$80x - $40x = $3400

Therefore:
$40x = $3400

Dividing both sides of the equation by $40, we get:
x = $3400 / $40

Simplifying, we get:
x = 85

Therefore, the bike store must sell 85 bicycles each month to break even.