Using linear functions, it is found that the store must sell 40 bicycles each month to break even.
What is a linear function?
A linear function is modeled by:
y = mx + b
In which:
- m is the slope, which is the rate of change, that is, by how much y changes when x changes by 1.
- b is the y-intercept, which is the value of y when x = 0, and can also be interpreted as the initial value of the function.
A bicycle store costs $2400 per month to operate, and pays an average of $60 per bike, hence the cost function is given by:
C(x) = 2400 + 60x
The average selling price of each bicycle is $120, hence the revenue function is given by:
R(x) = 120x
It breaks even when cost equals revenue, hence:
R(x) = C(x)
120x = 2400 + 60x
60x = 2400
x = 240/6
x = 40.
The store must sell 40 bicycles each month to break even.
More can be learned about linear functions at https://brainly.com/question/24808124
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