A bicycle store costs $4000 per month to operate. The store pays an average of $60 per bike. The average selling price of each bicycle is $110. How many bicycles must the store sell each month to break even?
Let's assume the bicycle store must sell x bicycles each month to break even.
The total cost to operate the store is $4000 per month.
The store pays an average of $60 per bike, so the total cost of buying x bikes is 60x.
The store sells each bicycle for $110, so the total revenue from selling x bicycles is 110x.
To break even, the total revenue must equal the total cost: 110x = 4000 + 60x.
Combining like terms, we get 50x = 4000.
Dividing both sides by 50, we get x = 4000/50 = 80.
Therefore, the bicycle store must sell 80 bicycles each month to break even.