Question: Sean designs and sells patches. He orders his patches in a unit of 100 and is charged $1.25 per patch. If he turns around and sells all 100 patches for $12.00 each, what is his net profit? Think carefully first, then make a decision:
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He orders 100 patches and they cost $1.25 each so the patches are 100 * 1.25 = $125.00. He sells each of the 100 patches for $12.00 each so he makes 100 * 12 = $1,200.00. He makes $1,200.00 selling patches and spends $125.00 to have them made so his net profit is 1200 - 125 = $1,075.00. So the answer is 1075.
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