ExplanationProfit is equal to Revenue – Expenses. First, calculate revenue:

12 cases sold for $220 each = $2640

60 Bottle sold for $20 each = $1200

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Total Revenue = $3480

Now, calculate expenses. How many total bottles of wine were sold? 12 cases × 12 bottles, plus 60 individual bottles = 204 bottles. Note that the bottles sold individually versus those sold in cases have the same purchase cost ($10), but different shipping costs. Thus:

204 bottles of $10 each = $2040

Shipping of bottles = \(60 \times $5\)

Shipping of case = \(12 \times $40\)

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Total Revenue = $2820

Profit = Revenue – Expenses Profit = $3,840 – $2,820 Profit = $1,020

Hence option B is correct!
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Sandy

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