Answer: the first option is the correct answer.
Explanation:
Let x represent the number of necklaces that he makes in a year.
Profit = Revenue - cost
The cost of making each necklace is $5. In making necklaces in a year, the fixed cost is $5000. This means that the total cost of making x necklaces in a year is
5x + 5000
Sam sells each necklace for $10 each. This means that the total amount made from selling x necklaces is $10x.
For Sam to make profit of $1000 in a year, the number of necklaces that she must sell would be
1000 = 10x - (5x + 5000)
1000 = 10x - 5x - 5000
10x - 5x = 1000 + 5000
5x = 6000
x = 6000/5
x = 1200