A company produces 500 units of a product, with a production cost of $30 per unit. If they sell each unit at $50, what is the total profit?

Fri, 01 May 2026 23:56:42 +0000

**Understanding Profitability: A Simple Look at a Product with $30 Cost and $50 Selling Price** In a market where consumers increasingly value transparency and efficiency, understanding how profits are calculated offers valuable insights—especially for businesses and buyers tracking pricing models. Right now, conversations around unit economics are rising, driven by rising costs, competitive pricing strategies, and a growing emphasis on sustainable profit margins. One frequently discussed example: A company producing 500 units of a product with a $30 production cost, selling each at $50. What does that mean for total profit, and why does it matter to businesses and shoppers alike? ### Why This Calculation Is Gaining Attention in the US The question arises amid growing focus on operational efficiency and market profitability in the US. With inflation concerns and heightened competition across manufacturing and retail, stakeholders are seeking clear, data-driven answers about how pricing sets translate into real income. This calculation forms a foundational model used across industries—from small-scale producers to large distributors—making it a timely and widely relevant topic.