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Can you determine how many bikes you must sell each month in order to break even (net income of $0)?Make sure you defend your approach.

Can you determine how many bikes you must sell each month in order to break even (net income of $0)?Make sure you defend your approach.

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Sales Price $ 500 Costs Frame $ 100 Seat $ 50 Tires {each} $ 10 Rent (monthly) $ 1500 Manager salary {monthly} $ 3,000 Assembly {per bike] $ 40 Depreciation (monthly) $ 250 No one mns a business with the goal of only breaking even. HOW many bikes would you need to sell each month to earn $5,000 net income? Lastly. you are considering a $10,000 advertising campaign that is expected to result in a one-time increase in sales of 50 bikes. Should you do it? Hint: consider xed versus variable costs

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