Question

Suppose you invest $10,410 in equipment to manufacture a new board game. Each game costs $2.65 to manufacture and sells for $20. How many video games must you make and sell before your business breaks even.

Answer 1

You would have to make and sell 600 video games.

Explanation:

Step 1: Subtract the total cost of a game from the sell value to get the overall income from each game.

$20 - $2.65 = $17.35

Step 2: Divide the investment price in equipment by the overall income from each game.

$10,410 ÷ $17.35 = 600

Therefore, you would need to make and sell 600 video games before your business breaks even.