The relationship between the number of units sold by a company and the profit is linear. If 5 units sold results in $110 profit and 37 units sold results in $814 profit, find the marginal profit.
A) $- \$ 22 \text { per unit }$
B) $44 per unit
C) $11.00 per unit
D) $22 per unit

Question

Quizplus · Accepted Answer

The marginal profit is the change in profit divided by the change in units sold. The change in profit is $814 - $110 = $704, and the change in units sold is 37 - 5 = 32. Thus, the marginal profit is $704 / 32 = $22 per unit.

The Relationship Between the Number of Units Sold by a Company