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 needs to make enough money to cover its monthly operating costs.
Let's assume the store sells 'x' bicycles in a month.
The total revenue from selling bicycles would be the selling price per bike multiplied by the number of bikes sold, which is 1.10 * x.
The total cost of operating the store is given as $3600.
To break even, the revenue from selling bikes should equal the operating cost:
1.10 * x = 3600
Now, let's solve for 'x':
x = 3600 / 1.10
x ≈ 3272.73
Therefore, the store must sell approximately 3273 bicycles each month to break even.