The market demand for a certain product from Silkskin Cosmetics is 10,000 units.The market share is 20%.The average selling price of a unit is $10 and the average cost price is $5.Calculate the gross profit for the product.
A)$10,000
B)$5,000
C)$20,000
D)$15,000
E)$30,000

Question

Quizplus · Accepted Answer

The gross profit is calculated as (Selling Price - Cost Price) * Quantity Sold. Silkskin Cosmetics' market share is 20% of 10,000 units, which is 2,000 units. The gross profit per unit is $10 - $5 = $5. Therefore, the total gross profit is 2,000 units * $5 = $10,000.

The Market Demand for a Certain Product from Silkskin Cosmetics