Casey has a small business making dessert baskets. She estimates that her fixed weekly costs for rent, electricity, and salaries are $200. The ingredients for one dessert basket cost $2.50. Casey’s total costs for last week were $500. How many dessert baskets did she make?

Total cost equals fixed costs plus the ingredient cost for each basket. Subtract the $200 fixed cost from $500 to get $300 spent on ingredients, then divide by $2.50 per basket: $300 ÷ $2.50 = 120 baskets. The correct choice is 120.

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