Kay’s mother taught her how to make handmade ornaments to sell at a craft fair. Kay rented a table at the fair for $30 and set up her work station. Each ornament that she makes costs approximately $2.50 for materials. She sells each ornament for $6.00.
Kay does not want to lose money on her business. Her mother told her she needs to sell enough ornaments to at least cover her expenses (costs for materials and table rental). Kay figures that if she sells 8 ornaments, she covers her expenses and does not lose any money.
Do you agree? Explain and show work to support your answer.
6 - 2.5 = 3.50 = gain on each
total gain = 3.50 * 8 = 28
but she needs 30!