Sam sells necklaces for $10 each. Each necklace costs er $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. 1,200
B. 100
C. 600
D. 200

Question

Sam sells necklaces for $10 each. Each necklace costs er $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. 1,200
B. 100
C. 600
D. 200

lilah · Answer

@jadeishere

luffingsails · Answer

Yearly Profit = SALES - COSTS

Sales = 10 * x (where x is the number of necklaces sold in a year).
Costs = 5000 (in fixed expenses) + 5 * x (where x is the same number of necklaces sold).

Yearly Profit = 10x - (5000 + 5x)

Set Yearly profit = 1000 and solve the equation.