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It cot Camp, Inc. $38 per unit to manufacture 1,000 unit per month of a product that it can ell for $54 each. Alternatively, Camp could proce the unit further into a more complex product, which would cot an additional $33 per unit. Camp could ell the more complex product for $81 each. How would proceing the product further affect Camp' profit?

Respuesta :

There will be a loss of $6000.

What is loss?

In Maths, Loss share formula is that the formula to calculate the proportion loss happened in any business.

Loss = Cost Price – Selling Price

Main body:

Total unit produced = 1000

cost price of 1 unit = $38

Selling price of 1 unit = $54

profit on 1 unit = $54-$38

profit = $16

total profit on 1000 units = 16*1000

                                         = $16000

After additional cost , cost price = 38+ 33 = $71

cost price after = $81

Profit on 1 unit = $10

profit on 1000 units = 10*1000

                                = $10000

Total profit/ loss after further addition = 16000-10000

therefore , loss of $6000 will be there.

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