A bicycle store costs $1500 per month to operate. The store pays an average of $60 per bike. The ave

Discussion in 'Calculator Requests' started by math_celebrity, Apr 12, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    A bicycle store costs $1500 per month to operate. The store pays an average of $60 per bike. The average selling price of each bicycle is $80. How many bicycles must the store sell each month to break even?

    Profit = Revenue - Cost

    Let the number of bikes be b.
    Revenue = 80b
    Cost = 60b + 1500

    Break even is when profit equals 0, which means revenue equals cost. Set them equal to each other:
    60b + 1500 = 80b

    We type this equation into our search engine and we get:
    b = 75
     

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