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Henry sells rings for $8 each. His expenses are $1.50 per ring, plus $91 for supplies. How much profit does he make if he sells 20 rings?

a. $53
b. $56
c. $59
d. $62

1 Answer

3 votes

Final answer:

Henry's profit from selling 20 rings at $8 each, after subtracting his expenses of $1.50 per ring and $91 for supplies, appears to be $39. However, this calculated profit does not match any of the answer choices provided, suggesting a potential discrepancy in the information given.

Step-by-step explanation:

To calculate the profit Henry makes by selling 20 rings, we first determine his total revenue and then subtract his total expenses, which include both variable and fixed costs.

Total revenue from selling 20 rings at $8 each is:
20 rings × $8/ring = $160

Total expenses are calculated by adding the variable costs to the fixed costs:
Variable costs: 20 rings × $1.50/ring = $30
Fixed costs: $91 for supplies
Total expenses: $30 (variable) + $91 (fixed) = $121

Now, subtract the total expenses from the total revenue to find the profit:
$160 (revenue) – $121 (expenses) = $39 profit

However, none of the options provided ($53, $56, $59, and $62) match the calculated profit of $39. This indicates there might be an error in the given options or in the initial assumptions.

User Eriknelson
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