Another firm has offered to produce “Old Softy” pillows and sell them to Dreamland for 12 each. Dreamland cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce these pillows. Under these conditions, how many “Old Softy” pillows must Dreamland sell to earn monthly gross profits of 1,000?

Another firm has offered to produce “Old Softy” pillows and sell

1.	Another firm has offered to produce “Old Softy” pillows and sell them to Dreamland for 12 each. Dreamland cannot avoid the factory lease payments, but can avoid all labor costs if it does not produce these pillows. Under these conditions, how many “Old Softy” pillows must Dreamland sell to earn monthly gross profits of 1,000?
A.	417
B.	500
C.	625
D.	875
Answer» D. 875