A company produces widgets at a cost of $15 per unit and sells them for $25 each. If the company sells 1,200 widgets, what is the profit?

Sat, 18 Apr 2026 01:49:16 +0000

How Widget Production Drives Profit: A Business Profit Breakdown In the competitive world of manufacturing, understanding the fundamentals of cost, pricing, and profit is essential for long-term success. One classic example is a company that produces widgets at a consistent cost of $15 per unit and sells them for $25 each. For businesses looking to evaluate performance, knowing how to calculate profit is crucial — and this real-world scenario illustrates the vital relationship between unit cost, selling price, and overall earnings. ### The Numbers Behind the Profit Let’s break down the scenario: A company produces widgets at a cost of $15 per unit and sells each widget for $25. When the company sells 1,200 widgets, the profit calculation follows a straightforward formula: