It looks like the Numerator (The top one over the line) Shows he makes 200 either dollars or pennies dimes idk the problem doesn't state the profit jargon but we can assume it says, he makes 200$ for every (x) meaning watch sold - what I can only assume the 300 is a flat cost he pays out of pocket for the supplies to make the watches he can then be ready to sell.
In case it asks, the denominator (bottom one) is also the amount of watches sold.
