It can purchase these games for $16 . If bragain toys advertises the game at a cost of $630 per month and sells them for $30 each . How many games does it need to sell to break even ?
1 Answer
Aug 12, 2018
For each month that advertising is run, 45 games need to be sold to break even.
Explanation:
The profit from each game sale is the retail price ($30) less the amount the store buys them for ($16). The profit per sale is $14.
The store pays $630 for advertising. To figure out how many games need to be sold to pay for the advertising, we divide:
