Question

Niveen makes muffins and sells them for $0.65 each. To make 12 muffins, she must spend $5.25 on muffin mix, $0.75 on vegetable oil, and $0.87 on eggs. The smallest batch of muffins Niveen can make is 12 muffins.



Which of the following situations would result in Niveen earning a profit?

Answer 1

First compute the cost to make 12 muffins:
5.25 + 0.75 + 0.87 = $6.87.

Revenue per muffin = $0.65, so revenue for 12 muffins = 12(0.65) = $7.80.

Profit for a 12‑muffin batch = 7.80 − 6.87 = $0.93.

More generally, profit for n muffins = 0.65n − 6.87, so she makes a profit whenever 0.65n > 6.87 ⇒ n > 10.569.... That means any whole number n ≥ 11 would yield profit, and since the smallest batch she can make is 12, every allowed batch (12, 24, 36, ...) results in a profit.