Question

You produce elastic bracelets that cost 25 cents to make. Your friend tells you to charge a price of 10 cents for each bracelet. At this price, you will _____.

Answer 1

1.20 will be used to make it for 5 cell 5 and you get 50 cents back so no profit is made

Answer 2

You produce elastic bracelets that cost 25 cents to make. Your friend tells you to charge a price of 10 cents for each bracelet. At this price, you will lose money.

Explanation:

If the cost of production of the bracelets is 25 cents, and they were sold at 10 cents, 15 cents would be lost per unit sold. In order to obtain an economic benefit as a result of the sale, an extra value must be added to the cost of production (that is, 25 cents + X). For example, to obtain a profit of 10 cents for each unit, each bracelet should be sold for 35 cents (25 + 10).