Chapter 6.4, Problem 7PPE

To determine

To calculate: Number of bicycles must be sold for breakeven.

Answer to Problem 7PPE

40 bicycles

Explanation of Solution

Calculation:

Let’s assume for breakeven $x$ number of bicycles are required.

Now, for $x$ bicycles, cost price (C.P.) is $2400+60x$ and selling price (S.P) is $120x$

Now, for breakeven, C.P is equal to S.P.

  $\therefore 2400+60x=120x$

  $\therefore x=40$

Therefore, 40 bicycles must be sold for breakeven