The Loft Is an Upscale Lounge That Caters to Young

Multiple Choice

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