The Loft is an upscale lounge that caters to young professionals who enjoy drinks after work in a casual and comfortable setting. The Loft has a specialty cocktail menu with items that its owner and head bartender, Stefan Young, created. All cocktails on the specialty menu are 15 each and include a variety of alcohol or liquors and are hand-crafted with ingredients such as egg whites, orange blossom water, lemon juice, lime juice, and simple syrup. Stefan has priced his cocktails so that he earns a 70 profit margin on each sale. Thus, the total costs to prepare each specialty cocktail are 30 of the retail price. Last month, Stefan sold 1,250 specialty cocktails. How much profit did Stefan's Loft business earn on the sale of specialty cocktails?
A) 13,125
B) 5,625
C) 6,500
D) 11,500
E) 10,725
Question 2
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Indicate whether the statement is true or false
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Please show all your work (4 marks)