SOLUTION: A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $285000 and the variable costs are $120 per machine. The wholesale price

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $285000 and the variable costs are $120 per machine. The wholesale price      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 94276: A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $285000 and the variable costs are $120 per machine. The wholesale price of the machine will be $130.
How many game machines must be sold for the company to break even?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $285000 and the variable costs are $120 per machine. The wholesale price of the machine will be $130.
------------
Company profit per machine = 130-120 = $10
------------
How many game machines must be sold for the company to break even?
EQUATION:
Let "x" be the number of machines sold.
Break Even occurs when cost = profit
285000 = 10x
x = 28,500
Break even occurs when they have sold 28,500 machines
==============
Cheers,
Stan H.