Teddy's interpretation of the solution \( x > 120 \) in the context of the problem means that James needs to serve more than 120 customers in order to earn more than $1,000 this week.
In practical terms, since \( x \) represents the number of customers, James must serve at least 121 customers (since he cannot serve a fraction of a customer) to exceed his target earnings of $1,000. This is how many customers he needs to serve to meet his goal of increasing his overall earnings beyond the $1,000 threshold.