# How many bikes must Peloton sell to break even on this international expansion if total fixed costs are 30 million

## Question:

How many bikes must Peloton sell to break even on this international expansion if total fixed costs are £30 million per year, variable costs are £1,995 per bike (Peloton sells them at cost), and monthly service variable costs are £5? Assume that a consumer purchasing a bike at the price of £1,995 will also subscribe for 12 months of the streaming service at £39.50 per month. Refer to Break-Even and Margin Analysis in Appendix 2: Marketing by the Numbers to learn how to perform this analysis.

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**19**Section: Discussion Questions

Problem: 14

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