A factory sells 1,000 units at $50 each with a cost per unit of $30. What is the total profit?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the BWS Academics Shell Test. Engage with flashcards and multiple choice questions, complemented by hints and explanations. Ace your exam with confidence!

Multiple Choice

A factory sells 1,000 units at $50 each with a cost per unit of $30. What is the total profit?

Explanation:
Profit comes from the difference between what each unit sells for and what it costs to produce, times the number of units sold. Here, per-unit profit is 50 minus 30, which equals 20. Multiply by 1,000 units to get 20,000 total profit. You can also see this by subtracting total costs from total revenue: revenue is 50 × 1,000 = 50,000, costs are 30 × 1,000 = 30,000, and 50,000 − 30,000 = 20,000. The other numbers would result from miscalculating the margin or mixing up revenue and cost.

Profit comes from the difference between what each unit sells for and what it costs to produce, times the number of units sold. Here, per-unit profit is 50 minus 30, which equals 20. Multiply by 1,000 units to get 20,000 total profit. You can also see this by subtracting total costs from total revenue: revenue is 50 × 1,000 = 50,000, costs are 30 × 1,000 = 30,000, and 50,000 − 30,000 = 20,000. The other numbers would result from miscalculating the margin or mixing up revenue and cost.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy