Question

global voyager inc. earned a profit of $2,880,000 on the worlds first "virtually realistic" virtual reality program. Assume the company sold 240,000 copies of the program costing $40 each to make. At what price did the company sell each program?

Answer 1

To find the price at which Global Voyager Inc. sold each program, we can use the information provided about the profit and costs.

1. **Calculate total revenue**:
- Let \( P \) be the selling price per program.
- The number of copies sold is 240,000.
- Therefore, the total revenue is \( 240,000 \times P \).

2. **Calculate total costs**:
- The cost to make each program is $40.
- Therefore, the total cost is \( 240,000 \times 40 = 9,600,000 \).

3. **Set up the profit equation**:
- Profit is calculated as:
\[
\text{Profit} = \text{Total Revenue} - \text{Total Costs}
\]
\[
2,880,000 = (240,000 \times P) - 9,600,000
\]

4. **Solve for \( P \)**:
\[
2,880,000 + 9,600,000 = 240,000 \times P
\]
\[
12,480,000 = 240,000 \times P
\]
\[
P = \frac{12,480,000}{240,000}
\]
\[
P = 52
\]

The company sold each program for **$52**.