A bicycle store costs $2800 per month to operate. The store pays an average of $60 per bike. The average selling price of each bicycle is $130 . How many bicycles must the store sell each month to break even?
The store must sell
enter your response here bicycles each month to break even.
(Type a whole number.)
To break even, the store needs to cover its monthly operating costs of $2800.
Let's assume the number of bicycles the store needs to sell each month to break even is x.
The store pays an average of $60 per bike, so the cost of x bikes is 60x dollars.
The average selling price of each bicycle is $130, so the revenue from selling x bikes is 130x dollars.
To break even, the store needs the revenue to cover the operating costs: 130x = 2800.
Dividing both sides of the equation by 130, we have:
x = 2800 / 130.
Calculating this value gives us:
x ≈ 21.54.
Since the number of bikes sold must be a whole number, the store must sell at least 22 bicycles each month to break even.