Question You are opening a new store selling custom-built bicycles. The materials cost 600 per bike. You also have startup costs for rent, utilities,etc. of 5,600 You plan to sell your bikes for 1,400 How many bikes do you need to sell to break even? Answer Attemptiout of 3 Additional Solution No Solution

To determine the break-even point, we need to calculate the total cost and the total revenue for each bike sold.<br /><br />The total cost for each bike is the sum of the materials cost and the startup cost. In this case, the materials cost is $600 and the startup cost is $5,600. Therefore, the total cost for each bike is $600 + $5,600 = $6,200.<br /><br />The total revenue for each bike sold is the selling price of the bike, which is $1,400.<br /><br />To find the break-even point, we need to find the number of bikes that need to be sold such that the total cost equals the total revenue. This can be represented by the equation:<br /><br />Total cost = Total revenue<br /><br />$6,200 \times \text{Number of bikes} = $1,400 \times \text{Number of bikes}$<br /><br />Simplifying the equation, we get:<br /><br />$6,200 \times \text{Number of bikes} - $1,400 \times \text{Number of bikes} = 0$<br /><br />$4,800 \times \text{Number of bikes} = 0$<br /><br />Dividing both sides of the equation by $4,800$, we get:<br /><br />$\text{Number of bikes} = 0$<br /><br />Therefore, the break-even point is 0 bikes. This means that the store will not make a profit or a loss if no bikes are sold.