A bicycle store costs $1500 per month to operate. The store pays an average of $70 per
bike. The average selling price of each bicycle is $100. How many bicycles must the
store sell each month to break even?
The store must sell
bicycles each month to break even.
To break even, the store must generate enough revenue to cover its operating costs. The operating costs of the store are $1500 per month.
The store makes a profit of $30 on each bicycle sold ($100 selling price - $70 cost per bike).
To cover the operating costs of $1500, the store needs to sell enough bicycles to generate $1500 in profit.
$1500 / $30 = 50
Therefore, the store must sell 50 bicycles each month to break even.