A bicycle store costs $3600 per month to operate. The store pays an average of $70 per bike. The average selling price of each bicycle is $1.10. 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.)
To break even, the store must have their total revenue equal to their total costs.
Let's assume the store must sell x bicycles each month to break even.
The total revenue generated from selling x bicycles is: x * $1.10.
The total costs to operate the store are $3600 per month.
Therefore, the equation is: x * $1.10 = $3600.
To find the value of x, divide both sides of the equation by $1.10:
x = $3600 / $1.10.
Calculating this, we find:
x ≈ 3272.73.
Since we cannot sell a fraction of a bicycle, the store must sell 3273 bicycles each month to break even.