SOLUTION: A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $570000 and the variable costs are $100 per machine. The wholesale price
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Question 94345: A video game manufacturer is planning to market a 64-bit version of its game machine. The fixed costs are $570000 and the variable costs are $100 per machine. The wholesale price of the machine will be $120.
(a) How many game machines must be sold for the company to make a profit?
(b) How many game machines must be sold for the company to break even? Answer by checkley71(8403) (Show Source):
You can put this solution on YOUR website! 570000+100x=120x
120x-100x=570000
20x=570000
x=570000/20
x=28,500 units need to be sold to break even.
28,501 units need to be sold to make a profit.
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