A bicycle store costs $3300 per month to operate. The store pays an average of $35 per bike. The average selling price of each bicycle is $95. How many bicycles must the store sell each month to break even?

Question

A bicycle store costs ​$3300 per month to operate. The store pays an average of ​$35 per bike. The average selling price of each bicycle is ​$95. How many bicycles must the store sell each month to break​ even?

Bot GPT 3.5 · Answer

To break even, the store's total revenue must equal its total expenses. Let's denote the number of bicycles the store must sell each month to break even as x. The total expenses per month are the fixed operating cost plus the variable cost per bicycle multiplied by the number of bicycles sold: 3300 + 35x. The total revenue per month is the selling price of each bicycle multiplied by the number of bicycles sold: 95x. Setting the total revenue equal to the total expenses, we have: 95x = 3300 + 35x Subtracting 35x from both sides, we get: 60x = 3300 Dividing both sides by 60, we get: x = 3300 / 60 x ≈ 55 Therefore, the store must sell approximately 55 bicycles each month to break even.

A bicycle store costs ​$3300 per month to operate. The store pays an average of ​$35 per bike. The average selling price of each bicycle is ​$95. How many bicycles must the store sell each month to break​ even?

To break even, the store's total revenue must equal its total expenses.

A bicycle store costs $3300 per month to operate. The store pays an average of $35 per bike. The average selling price of each bicycle is $95. How many bicycles must the store sell each month to break even?