Calculate the gross profit generated if 2 million units are sold at a margin price of $200 per unit.
A)$200 million
B)$400 million
C)$100 million
D)$100,000
E)$400,000

Question

Quizplus · Accepted Answer

Gross profit = (Margin price - Cost price) x Number of units sold
Assuming the cost price is not given, we cannot calculate the exact gross profit. However, we can calculate the revenue generated.
Revenue = Margin price x Number of units sold
Revenue = $200 x 2,000,000 = $400,000,000
Therefore, the gross profit generated would be less than $400 million (since there are additional costs involved), but option B is the closest choice.

Calculate the Gross Profit Generated If 2 Million Units Are