Answer:
751 cupcakes must be sold to make a profit
Step-by-step explanation:
From the question we are told that
Annual cost= $1,500 per year plus a cost of $1 per cupcake
Each cup cake sell at $3
Generally the profit off the top of each cupcake is $2
Therefore
[tex]\frac{1500}{2}=750[/tex]
This implies that 750 cupcakes will be sold to cover the annual cost excluding cupcake cost
Generally
751 cupcakes=$1502
Total Annual cost to make a profit
[tex]1(cost\ of\ each\ cupcake)*751+1500=\$2251[/tex]
Total Annual sale
[tex]3(sale of each cupcake)*751=\$2253[/tex]
Mathematically
[tex]2253\$-2251\$=2\$[/tex]
Therefore
751 cupcakes must be sold to make a profit
