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A new computer game costs $160,000 to research and develop. Once completed, individual games can be produced for just $.20 each. If the first 275 are given away as samples, how many games must be sold for the average price to be $2?

User DChhapgar
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1 Answer

14 votes
14 votes

Answer: The correct answer is (d) 89,200 games.

To find the number of games that must be sold, we need to set up an equation to represent the total revenue from the game sales and solve for the number of games sold.

The total revenue from the game sales is equal to the number of games sold multiplied by the price per game, minus the cost of research and development.

Let X be the number of games sold

Total revenue = X * $2 - $160,000

We also know that the total cost of producing the games is equal to the number of games produced multiplied by the cost per game.

Total cost = X * $0.20

We can set the total revenue equal to the total cost and solve for X:

X * $2 - $160,000 = X * $0.20

X = 89,195

Since we gave away the first 275 games for free, we need to add 275 to the number of games sold to find the total number of games that must be sold.

Total number of games sold = X + 275 = 89,195 + 275 = 89,470

Therefore, the correct answer is (d) 89,200 games.

User SeleM
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