3. The sales director a manufacturer decides to try out two different methods of distributing and seling a new video game. The game is sold to a retailer for a net profit of $9.90 on each game . The game is also sold at the factory outlet for a net profit of $10.99 on each game. If 500 games are sold by the outlet, many more would have to be sold by the retailer in order for the profit to be about equal

The number of games that need to be sold to the retailer in order for the profit to be about equal is approximately 555 games

Step-by-step explanation:

The given parameters are;

The net profit at which each game is sold to a retailer = $9.90

The net profit at which each game is sold at the factory outlet  = $10.99

The number of units sold by the outlet = 500

The amount in profit from selling at the factory outlet = 500 × $10.99 = $5,495.00

The number of games that need to be sold to the retailer in order for the profit to be about equal is given as follows;

Let "x" represent the number of games that need to be sold to the retailer in order for the profit to be about equal

Therefore, we have;

x × $9.90/game = $5,495.00

x = $5,495.00/($9.90/game) = 555. games ≈ 555 games

Therefore, the number of games that need to be sold to the retailer in order for the profit to be about equal = x ≈ 555 games.

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