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Sails Ahoy, a Small Company That Makes Model Sailboat Kits

Question 63

Multiple Choice

Sails Ahoy, a small company that makes model sailboat kits priced at $120 each, spends $45 on materials and $5 in labour to produce each kit.The company incurs monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for the proprietor's salary.If Sails 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

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