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The total cost for producing 1000 units of a commodity is $4.5 million, and the revenue generated by the sale of 1000 units is $5.7 million. What is the profit on 1000 units of the commodity?

User Anzhelika
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Final answer:

The profit for producing and selling 1000 units of a commodity, given the total cost of $4.5 million and total revenue of $5.7 million, is $1.2 million.

Step-by-step explanation:

The student has asked about calculating the profit from the sale of 1000 units of a commodity. The profit on 1000 units of the commodity is determined by subtracting the total costs from the total revenues. In this scenario, the total cost is $4.5 million and the total revenue is $5.7 million. Therefore, the profit can be calculated as follows:

Profit = Total Revenue - Total Costs

Profit = $5.7 million - $4.5 million

Profit = $1.2 million

This calculation shows that the company makes a profit of $1.2 million on the sale of 1000 units.

User Ayelet
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