Question

Marcelino bought balloons to sell at lunches to raise money for charity.

Item
Cost
Thirty Balloons
$22.50
Ribbon
$7.50
Helium Tank Rental
$15.00

Marcelino claims he will raise a lot of money by selling each balloon for $1.25. Which statement is true about the amount of money he will make if he sells all of the balloons?
Marcelino will only make a profit of $7.50; each balloon costs $1.50, so he’s making $.25 on each balloon.
Marcelino will break even; his cost will equal his profits.
Marcelino will have –$7.50; his costs are more than his profits.
Marcelino will raise $45.00; each balloon raises $1.50.

Answer 1

To determine how much money Marcelino will make by selling the balloons, we first need to calculate his total costs and then calculate his profits based on his selling price.

1. **Total Costs**:
- Cost of thirty balloons: $22.50
- Cost of ribbon: $7.50
- Helium tank rental: $15.00

Total Costs = $22.50 + $7.50 + $15.00 = $45.00

2. **Total Revenue from Selling Balloons**:
- Selling price per balloon: $1.25
- Number of balloons: 30

Total Revenue = $1.25 * 30 = $37.50

3. **Profit Calculation**:
Profit = Total Revenue - Total Costs
Profit = $37.50 - $45.00 = -$7.50

Based on these calculations, Marcelino will have a loss of $7.50.

Now let's analyze the statements:

1. **Marcelino will only make a profit of $7.50; each balloon costs $1.50, so he’s making $.25 on each balloon.** - This is incorrect.
2. **Marcelino will break even; his cost will equal his profits.** - This is incorrect.
3. **Marcelino will have –$7.50; his costs are more than his profits.** - This is correct.
4. **Marcelino will raise $45.00; each balloon raises $1.50.** - This is incorrect.

The true statement is: **Marcelino will have –$7.50; his costs are more than his profits.**