Math Problem Statement

help me with the first step of this question: A bicycle store costs $4000 per month to operate. The store plays $80 per bike. The average selling price of each bike is $160. How many bicycles must the store sell each month to break even? (do this as a system of equations as elimination. remember to only do the first step.)

Solution

Sure! Let's solve this step by step using a system of equations and the method of elimination.

Problem Breakdown:

  • The store's fixed costs per month are $4000.
  • The cost to the store per bike is $80.
  • The selling price of each bike is $160.

The objective is to determine how many bicycles the store must sell to break even, meaning that the store's revenue equals its costs.

Step 1: Set up the system of equations.

Let xx represent the number of bicycles the store sells each month.

  • Equation 1 (Costs equation): The total cost for the store includes its fixed operating costs ($4000) plus the cost per bike ($80) multiplied by the number of bikes sold (xx). Total Costs=4000+80x\text{Total Costs} = 4000 + 80x

  • Equation 2 (Revenue equation): The total revenue for the store comes from selling bikes at $160 each. The revenue is therefore: Total Revenue=160x\text{Total Revenue} = 160x

At the break-even point, the store’s revenue equals its costs, so: 4000+80x=160x4000 + 80x = 160x

Next Step:

Now, we have the system of equations:

1. & \quad 4000 + 80x = 160x \\ \end{aligned}$$ In the next step, we'll solve for $$x$$ by eliminating terms and solving the equation. Let me know if you'd like to proceed with that! Would you like to go further and solve for $$x$$? Or do you have any questions about this first step? --- Here are some related questions to consider: 1. How do you solve an equation for a variable? 2. What does the "break-even point" mean in business terms? 3. How does the concept of fixed costs versus variable costs affect business operations? 4. Can you calculate the store's profit if it sells more than the break-even number of bikes? 5. What happens if the cost per bike increases? How would that affect the break-even point? **Tip**: When solving for $$x$$ in an equation, always aim to isolate the variable on one side by using inverse operations, like subtraction or division!

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Math Problem Analysis

Mathematical Concepts

Linear Equations
Break-even Analysis
System of Equations

Formulas

Cost Equation: Total Costs = Fixed Costs + Variable Cost per Unit × Number of Units
Revenue Equation: Total Revenue = Selling Price per Unit × Number of Units
Break-even Equation: Total Costs = Total Revenue

Theorems

Equality Property of Equations

Suitable Grade Level

Grades 8-10