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almond37 [142]
3 years ago
10

Suppose you invest $10,400 in equipment to manufacture a new board game. Each game costs $2.65 to manufacture and sells for $20.

How many games must you sell to break even?
Mathematics
1 answer:
tamaranim1 [39]3 years ago
3 0
Answer: 599.42 games
To answer this question, you need to calculate the revenue for every game sold first. The calculation would be:
Revenue= sell cost - manufacture cost= $20-$2.65= $17.35/game.

Break even is the point when the game manufacturing cost(equipment cost included) is covered by the revenue you got. Then the calculation would be:

total game cost= revenue per game * number of game sold
$10400= number of game sold * $17.35
number of game sold= 10400/17.35=  599.42 games

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