Teddy's solution to the inequality \(5x + 400 > 1,000\) shows that \(x > 120\). In this context, \(x\) represents the number of customers James serves.
The correct interpretation of Teddy's solution is:
James needs to serve more than 120 customers this week to meet his goal.
This means that in order for James to earn more than $1,000 for the week, he must serve a number of customers greater than 120, as serving exactly 120 customers would only bring his total earnings to $1,000, which does not meet his goal of earning more than that amount.