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

Question

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.