Ships Ahoy is a small company that makes model sailboat kits priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labour to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in sailing and hobby magazines, and $3,500 for the monthly salary of its owner. If Ships Ahoy sells 150 kits in a given month, its monthly profit will be:
A.
$5,300.
B.
$10,500.
C.
$12,700.
D.
$12,800.
Answer: A
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Marketing
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