Question

bicycle store costs 83200 per month to operate. The store pays an average of 850 per bike. The average selling price of each bicycle is 380, How many bicycies must the ore sell each month to break even?

Answer 1

[AI-generated answer — Bot GPT 3.5]

To break even, the total revenue must be equal to the total costs.

Let's denote the number of bicycles sold per month as x.

The total revenue from selling the bicycles is given by the selling price per bike multiplied by the number of bikes sold: 380x.

The total costs, which include the operational costs of the store plus the cost per bike, can be calculated as: 83200 + 850x.

To break even, the total revenue and total costs should be equal. Hence, we can set up the equation:

380x = 83200 + 850x

To isolate the variable x, we can subtract 850x from both sides:

380x - 850x = 83200

Combine like terms:

-470x = 83200

To solve for x, we divide both sides by -470:

x = 83200 / -470

x ≈ -177.021

Since we can't sell a negative number of bicycles, we need to round up to the nearest whole number.

Therefore, the store must sell at least 178 bicycles each month to break even.