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.