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Answer:
The number of games that need to be sold to the retailer in order for the profit to be about equal is approximately 555 games
Step-by-step explanation:
The given parameters are;
The net profit at which each game is sold to a retailer = $9.90
The net profit at which each game is sold at the factory outlet = $10.99
The number of units sold by the outlet = 500
The amount in profit from selling at the factory outlet = 500 × $10.99 = $5,495.00
The number of games that need to be sold to the retailer in order for the profit to be about equal is given as follows;
Let "x" represent the number of games that need to be sold to the retailer in order for the profit to be about equal
Therefore, we have;
x × $9.90/game = $5,495.00
x = $5,495.00/($9.90/game) = 555. games ≈ 555 games
Therefore, the number of games that need to be sold to the retailer in order for the profit to be about equal = x ≈ 555 games.