A company sells two products, A and B. Product A costs $120, and Product B costs $80. If the company sold 150 units of Product A and twice as many units of Product B, what were the total revenue generated? - Parker Core Knowledge

Understanding the Context

Across American households and digital marketplaces, pricing strategy meets practical utility. Product A, priced at $120, sits in the premium segment—often associated with lasting durability or enhanced functionality. Meanwhile, Product B at $80 offers accessible value, creating a balanced portfolio that appeals to diverse segments. Selling 150 units of A and 300 units of B—twice as many—reflects strong consumer response to perceived worth and practical need. This dynamic mirrors broader trends in mid-tier consumer goods, where variety and affordability drive repeat purchases.

How the Numbers Add Up: Total Revenue Breakdown

To uncover the total dollars generated, break the sales by product. Selling 150 units of Product A at $120 each yields:
$120 × 150 = $18,000
Doubling Product B’s volume to 300 units at $80 each delivers:
$80 × 300 = $24,000
Adding both yields a clear total revenue figure:
Total revenue = $18,000 + $24,000 = $42,000

This calculation not only demonstrates precise financial tracking but also highlights how balanced product lines amplify overall market exposure. In an era where transparency strengthens trust, this kind of clear reporting aligns with consumer expectations—especially in the US, where informed purchasing decisions drive loyalty.

Key Insights

Common Questions Consumers Ask About This Revenue Scenario

Why “twice as many” of Product B?
This strategy leverages demand: for every buyer of A, there’s a strong interest in B—enhancing basket size and repeat engagement.

Does revenue depend on conversion rates or volume?
Yes. Here, volume assumes steady conversion; fluctuating traffic or market shifts would impact final revenue.

How do pricing tiers influence purchasing behavior?
Smaller upfront costs (like B) encourage trial, while premium products (like A) build long-term trust and higher average spend.

Clarifying these points helps users grasp real-world application beyond spreadsheets.

Final Thoughts

Opportunities and Realistic Considerations

The $42,000 total offers a benchmark for businesses refining pricing models—balancing affordability with premium perception. Scaling beyond 300 units of B requires validating sustained demand and margin health