Answered

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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.)

Sagot :

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.
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