A company sells a product for $120. If the cost to produce it is $75 and they sell 400 units, what is the total profit?

Tue, 05 May 2026 00:45:37 +0000

**Why 400 Units at $120 Each Is Drawing Attention—and How It Calculates to Millions in Profit** In the evolving landscape of digital commerce, pricing strategies, scalability, and profitability are central to business success—especially for niche products gaining traction. When a company prices a quality item at $120, with production costs at $75 per unit, selling exactly 400 units, the math behind total profit reveals more than just numbers: it highlights real-world trade-offs, market demand, and financial clarity. This scenario isn’t just a textbook example—it’s what’s fueling conversations across US-based audiences focused on smart investing, entrepreneurship, and emerging trends in e-commerce. As more buyers seek transparency and smart value, understanding how profit works behind the scenes shapes informed choices. ### What’s the True Total Profit? Clear, Neutral Breakdown The formula is straightforward: subtract total production costs from total revenue. At $120 per unit and 400 units sold, the revenue hits $48,000. With each unit costing $75 to produce, total production expenses total $30,000. Dividing the $48,000 revenue by $30,000 gives a total profit of $18,000. This figure—$18,000—represents far more than a simple calculation. It reflects scalable growth and steady returns in markets where reliable pricing and quality align. With mobile-first shopping increasingly driving purchases, this kind of consistent profit margin spawns long-term business viability.