Profit per unit = $50 - $30 = $20

Sun, 03 May 2026 04:17:47 +0000

Understanding Profit Per Unit: How $50 Revenue Hits $30 Cost Equals $20 Profit Understanding how to calculate profit per unit is essential for any business aiming to maximize profitability. A simple profit equation—Total Revenue per Unit Minus Cost per Unit Equals Profit per Unit—is the foundation of sound financial decision-making. In this example, when revenue per unit is $50 and the cost per unit is $30, the profit per unit is clearly $20. This concept applies across industries, from retail and e-commerce to services and manufacturing. ### What is Profit Per Unit? Profit per unit represents the amount of profit generated for each individual product or service sold. It’s calculated using the formula: