Final answer:
The question is incomplete; the numbers provided (A. $6.50 B. $1.50 C. $2.50 D. $4.00) don't correlate with the details given about Cindy's Cotton Candy's costs and sale price. The expected answer probably concerns the profit per bag or how many bags need to be sold to break even.
Step-by-step explanation:
The question seems to concern the calculation of profit or loss for Cindy's Cotton Candy business based on the given costs and sale price. However, the numbers and letters presented within the question (A. $6.50 B. $1.50 C. $2.50 D. $4.00) don't match up with the details provided, and as such, the question appears to be incomplete or missing the actual question that needs to be answered regarding Cindy's Cotton Candy business situation.
Cindy's Cotton Candy sells cotton candy by the bag with monthly fixed costs of $150. For each bag, the variable cost is $2.50, and the sale price is $4.00. This implies a gross profit of $1.50 per bag ($4.00 sale price - $2.50 cost).