Question

Sam sells necklaces for $10 each. Each necklace costs her $5 to make. She also has $5,000 in fixed costs per year for her jewelry business. How many necklaces must she sell in order to make a profit of $1,000 in one year? A. 200 B. 600 C. 100 D. 1200

Answer 1

profit = revenue - expenses

Filling in the given values, where n is the number of necklaces Sam must sell ...

... 1000 = 10n - (5n +5000)

... 6000 = 5n . . . . . . collect terms, add 5000

... 1200 = n . . . . . . . divide by 5

The appropriate choice is

... D. 1200