Problema Solution

Sally is considering opening up a lemonade stand to earn some spending money over the summer. She estimates each glass of lemonade will cost her $1 to prepare for sale. What does she need to sell it for in order to make $1.50 of gross profit on each glass?

Answer provided by our tutors

Cost of lemonade = $1

Gross profit = $1.50

Net sales = ?

Gross profit = Net sales - Cost of lemonade

Net sales = Gross profit + Cost of lemonade

Net sales = $1.50 + $1.00

Net sales = $2.50

Sally needs to sell the lemonade for $2.50 per glass.