Question

One product is sold at 2 times it’s cost. If you sold 1,000 units and made a profit of $5000, what is the per unit cost?

Answer 1

Solution:

Let $\dpi{100} \large x$ be the cost per unit.

Then the selling price per unit is $\dpi{100} \large 2x$ .

We are given that 1000 units are sold with a profit of $5000. Therefore, we can write the total sale as:

$\dpi{100} \large 2x \times 1000= x \times 1000 + 5000$

$\dpi{100} \large 2000x = 1000x + 5000$

$\dpi{100} \large 2000x-1000x = 1000x + 5000-1000x$

$\dpi{100} \large 1000x = 5000$

$\dpi{100} \large x=\frac{5000}{1000}=5$

Therefore, the cost per unit is $5,