A business invests $50,000 in equipment to produce a new hand-held video game. Each game costs $15.00 to produce and is sold for $36.25. How many hand-held video games must be sold

Answer 1

The profit for each unit sold is $36.25-$15.00 = $21.25. If the goal is to make back the initial investment, then the number of units to sell to make $50,000 equals 50,000/21.25 = 2352.9. Since you can't sell a fraction of one unit, that means you round up; you have to sell 2353 units to make the original investment back.