A bakery sells cakes for $25 each. The ingredients cost $8 per cake, and the monthly rent is $600. How many cakes must be sold to make a profit of at least $1000 this month?
Correct Answer: A
Choice A is the correct answer. Profit is calculated as Revenue minus Costs.
- Revenue: $25 per cake ()
- Variable Cost: $8 per cake ()
- Fixed Cost: $600 rent
- Profit Equation: Profit = Revenue - Variable Cost - Fixed Cost
- Inequality:
- Simplify:
- Add 600:
- Divide by 17:
- Round up: Since you can't sell a fraction of a cake,
?�� Strategic Tip: Net profit per unit is (Selling Price - Cost per unit). Total Profit = (Net per unit × Quantity) - Fixed Costs.
Choice B is incorrect because it ignores the variable cost of ingredients (). Choice C is incorrect because it ignores the rent (). Choice D is incorrect because while the setup is correct, Choice A is the solved answer, and D is just the setup (though mathematically valid, A is the explicit solution requested by "How many cakes..."). Wait, usually solving is preferred. Let's re-read. "How many cakes..." implies finding the value. A is the best answer. D is the setup.
Correction: Choice D is the setup, but A is the solution. The question asks "How many cakes", so A is the answer.