Profit at a given volume practice problems

Marketing Unit 8. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

Price is $60, variable cost is $45 per unit and fixed costs are $20,000. What is the profit (in dollars) if 3,500 units are sold?

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Contribution = 60 − 45 = 15 per unit. Total contribution = 3500 × 15 = 52500. Profit = 52500 − 20000 = 32500.

Problem 2.

Price is $50, variable cost is $38 per unit and fixed costs are $15,000. What is the profit (in dollars) if 4,000 units are sold?

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Contribution = 50 − 38 = 12 per unit. Total contribution = 4000 × 12 = 48000. Profit = 48000 − 15000 = 33000.

Problem 3.

Price is $25, variable cost is $13 per unit and fixed costs are $25,000. What is the profit (in dollars) if 4,500 units are sold?

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Contribution = 25 − 13 = 12 per unit. Total contribution = 4500 × 12 = 54000. Profit = 54000 − 25000 = 29000.

Problem 4.

Price is $45, variable cost is $33 per unit and fixed costs are $25,000. What is the profit (in dollars) if 4,500 units are sold?

Show solution

Contribution = 45 − 33 = 12 per unit. Total contribution = 4500 × 12 = 54000. Profit = 54000 − 25000 = 29000.

Problem 5.

Price is $60, variable cost is $52 per unit and fixed costs are $25,000. What is the profit (in dollars) if 1,500 units are sold?

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Contribution = 60 − 52 = 8 per unit. Total contribution = 1500 × 8 = 12000. Profit = 12000 − 25000 = -13000.

Problem 6.

Price is $60, variable cost is $48 per unit and fixed costs are $10,000. What is the profit (in dollars) if 2,500 units are sold?

Show solution

Contribution = 60 − 48 = 12 per unit. Total contribution = 2500 × 12 = 30000. Profit = 30000 − 10000 = 20000.