Mathematics
bmorcus
8

Find the possible net profit for the estimated unit sales.

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(1) Answers
DanaeHowdyshell

Net profit is given by total revenue minus total cost. Total revenue is given by product of the selling price and the number of units sold. Total cost is given by the product of the total unit cost and the number of units produced. Given that the selling price is $45 and the number of units sold is 10,000 units. Thus, the total revenue = $45 x 10,000 = $450,000 Given that the total unit cost is $33 and the number of units is 10,000 units. Thus, the total cost = $33 x 10,000 = $330,000. Therefore, net profit = $450,000 - $330,000 = $120,000

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