# Business Proposal for Speedz Bikes

## The best bikes, on a pre-order basis!

Speedz Bikes is a shop that runs on minimal inventory. They only buy the amount of bikes from the manufacturer that will be sold to the customers. The manufacturer sells the bikes to us at a price of \$90, but in order to make our ends meet, we must sell them for \$150.

In order to operate the shop, we incur costs such as rent, property taxes, maintenance, utilities, telephone, and other miscellaneous costs that add up to \$4,700.

We need to determine the minimum number of bicycles that are to be sold each month in order to break even.

The following is a table that includes the data:

## Explanation

The significance of this solution is of paramount importance for this new venture. In order to cover month to month costs, the two systems of equations indicate that the venture must yield a minimum sales of 80 bicycles a month. If this target is not attainable, it will indicate to the owner that she or he must either decrease costs or increase sales by introducing other products and services that would complement this business. Other products and services could include: bicycle accessories, safety products, spare parts, and repairs services. All these additional products and services would contribute to additional income and therefore reduce the reliance on selling the minimum number of bicycles indicated in this solution.

## Break-even?

x represents the number of bicycles sold and D represents dollars.

According to the graph, we will have to sell 80 bikes per month for sales to equal cost of sales, or where the equation D= \$150x is equal to D=\$90x + 4,700, x representing the number of bicycles.