To interpret Teddy's solution correctly, we should look at the original inequality \( 5x + 400 > 1,000 \). After solving it, he found that \( x > 120 \).
In this context, \( x \) represents the number of customers James serves. The inequality indicates that James needs to serve more than 120 customers to exceed his goal of earning more than $1,000.
Therefore, the appropriate interpretation of the solution is:
James needs to serve more than 120 customers this week to meet his goal.