The DVD player costs $265 less than the TV, so the TV is one unit plus $265. Together $721.

DVD player?LCD TV?$265$721

Plain numbers are given; italic underlined numbers are worked out.

  1. 2 units + $265 → $721
  2. 2 units → $721 − $265 = $456
  3. 1 unit (DVD) → $456 ÷ 2 = $228
  4. LCD TV → $228 + $265 = $493

The LCD TV costs $493.

Check: $493 + $228 = $721, and $493 − $228 = $265. ✓