Five hundred raffle tickets Five hundred raffle tickets were sold by a club for a drawing on a prize of 600 dollar. If you buy a raffle ticket for 3$, what can you conclude about the cost of the raffle ticket? * * * _Attempt_ : First I calculated the price for all sold tickets $= 3\cdot 500 =1500 $. Second I subtracted $600$ from $1500 $. $$1500-600= 900 $$ Is that the cost?

The question is difficult to interpret, but the best interpretation I can think of is "what can you say about the production cost of a raffle ticket?"

Let's say that's $\$ x$. $500$ tickets would've cost them $\$500x$ to produce. They sell them for $\$3$ each and then give away a single prize of $\$600$.

The club's profit $P$ in dollars at the end of the venture is:

$P = 1500 - 600 - 500x = 900 - 500x$

To be profitable, $P > 0$, giving $x < \frac 95$.

So the maximum production cost of a single raffle ticket would be $\$1.80$. Beyond this level, the raffle would no longer make sense financially.