Lizzy: 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?.
Me: Hmmm, let me think. I think this is the detailed solution:
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. Final answer: 1075.