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You decide to charge $10 for a bracelet that costs 25 cents to make. At this price, you would _____.

lose money
cover your costs
earn a profit

2 Answers

7 votes
C. earn a profit as which your only paying 25 cent to make one braceelet
answered
User Arham Chowdhry
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8.8k points
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If you charge 10 for a bracelet that costs 25 cents, you are going to earn a profit (The answer is the last option).

Explanation: It is a fact that people invest in something with the hope of getting some money out of it, to have profits. If your cost of making a bracelet is lower (25 cents) than the actual price (10 dollars) of it, you are recovering what you invested (25 cents) and gaining a little bit more. And just like that, you accomplish your goal of earning a profit out of that bracelet. Something different happens when it is the opposite of that if your cost is higher than the price, you lose money.

Cost and price are different. Cost is what you invested in making or producing a product and price is what you charge it with, considering what you invested.

answered
User Vendrel
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7.3k points

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