Question

Suppose you produce a camera that costs $50 to make. At a selling price of $45, you will _____.

earn a profit
just cover your costs
lose money

Answer 1

You will lose money. Because $50 to make subtract $45 to sell (50-45) leaves you losing $5.

Answer 2

You will __$5___ earn a profit just cover your costs lose money

Explanation:

As per the statement:

Cost Price of the camera = $50

Selling price of the camera = $45

We have to find the profit that you will earn.

Since,
`C.P > S.P` then, you have suffer a loss.

Using formula:

`\text{Loss} = \text{Cost Price} -\text{Selling price}`

Then;

`\text{Loss} = 50-45 = \$5`

Thus, if you want to cover your costs lose money , then you will earn a profit of $5