Mike’s Bikes has asked you to figure out how many bikes they need to sell and what their total sales in dollars would be to show a net profit of $5,000. They sell each bike for $100, with $40 in variable expenses per bike. Mike’s fixed expenses per month are $3,500. Mike would need to sell bikes for a total sales of to meet his net target profit.

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spopoy2420 spopoy2420 · Answer 1 · 2024-04-21T01:59:16-04:00

Answer:

Mike would need to sell 142 bikes for a total profit of $8,520.

Step-by-step explanation:

First you make an equation in regards to money coming in

Money coming in=100x, where x is bikes sold

then you make an equation regarding monthly expenses depending on bikes sold

monthly expenses=40x+3500, where x is bikes sold

Then you make a profit function that includes all expenses plus profit per bike, where x is each bike sold

x(100-40)-3500= total profit

If you set that equation equal to zero then solve it will show how many bikes must be sold before Mikes monthly expenses are covered

x(100-40)-3500=0

x(60)-3500=0

60x=3500

x=58.33333, so x=59 since Mike cant sell .3333 of a bike.

Then you plug the profit mike is aiming to make into the equation and solve.

x(100-40)-3500=5000

x(60)-3500=5000

60x=8500

x=141.66666 but the answer would be 142

then that gives you the amount of bikes that need sold to make $5000 profit. so plug the number of bikes into the money coming in equation

142(100)= $14,200 is the total amount of sales mike made minus expenses of $9,180 for a total profit of $5,020.