A factory sells 1,000 units at $50 each. If the cost per unit is $30, what is the profit per unit?

A factory sells 1,000 units at $50 each. If the cost per unit is $30, what is the profit per unit?

• A. $20 per unit
• B. $10 per unit
• C. $25 per unit
• D. $15 per unit

Answer: (A)

Per-unit profit is what you earn on each individual unit, so you look at price minus cost per unit. Here, each unit sells for $50 and costs $30 to make, so the profit for one unit is $50 − $30 = $20. Since 1,000 units are sold, the total profit would be 1,000 × $20 = $20,000, which reinforces that the profit per unit remains $20. The core idea is straightforward: profit per unit equals price minus cost per unit.

Per-unit profit is what you earn on each individual unit, so you look at price minus cost per unit. Here, each unit sells for $50 and costs $30 to make, so the profit for one unit is $50 − $30 = $20. Since 1,000 units are sold, the total profit would be 1,000 × $20 = $20,000, which reinforces that the profit per unit remains $20. The core idea is straightforward: profit per unit equals price minus cost per unit.