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Doss [256]
2 years ago
5

A bicycle store costs ​$4500 per month to operate. The store pays an average of ​$65 per bike. The average selling price of each

bicycle is ​$155. How many bicycles must the store sell each month to break​ even?
Mathematics
1 answer:
maria [59]2 years ago
6 0

Answer: 50 bicycles

Step-by-step explanation:

The breakeven quantity is the amount that must be sold to bring the profit to zero.

You can use the following formula to calculate it:

= Fixed cost / Contribution margin

Fixed cost= $4,500 per month to operate

Contribution margin = Selling price - Variable cost = 155 - 65 = $90

Breakeven = 4,500 / 90

= 50 bicycles

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