Answered

A business spends $14,000 to produce a new board game. Each game costs $1.90 to produce and is sold for $9.99. How many games must be sold before the business breaks even? (Round your answer to the nearest whole number.)



Answer :

Divide $14,000 by $9.99 = 1401 board games

Since we know $14,00 is how much has been spent on the board game in total, the price to make each board ($1.90) game isn't necessarily relevant.

So you take the profit made from each game and divide that from how much was spent for the board game.


rabinshrestha41
Total money = $14,000
Sales price = $9.99
Now, 
Divide the total money by sales price and it should give you the total sales required to break the business even.
So,
total sales required = 14,000 / 9.99
                             = 1401.401401
                             = 1401
Now, lets check the answer,
total sales * sales price should equal or be greater than business amount.
So,
1401 * $9.99 = $13995.99  ==> which is less than the business price.

Now, Lets add 1 to the total sales and lets check the answer again.
(1401 + 1) * $9.99 
= 1402 * $9.99
= $14005.98

Since, it is greater than the business price, the total sales is 1402.
So, 1402 games must be sold to make the business even.

NOTE: THEORETICALLY, 1401 IS THE ANSWER BECAUSE IT IS ROUNDED TO THE NEAREST WHOLE NUMBER. BUT, PRACTICALLY 1402 IS THE ANSWER BECAUSE A BUSINESS IS EVEN IF AND ONLY IF THE TOTAL SALES IS EQUAL TO OR GREATER THAN THE BUSINESS PRICE.

SO, ASK YOUR TEACHER FOR WHICH IS CORRECT BETWEEN THOSE TWO.

Other Questions