Product Profit Calculator

Formula

To calculate the Product Profit (PP):

\[ PP = (SP - C) \times QP \]

Where:

$PP$ is the Product Profit (\$)
$SP$ is the product selling price (\$)
$C$ is the product cost (\$)
$QP$ is the total quantity of product sold

What is Product Profit?

Product Profit is the total amount of money a business makes from selling a product after deducting the cost of producing or purchasing that product. It helps businesses understand their profitability and make informed decisions about pricing and production.

Example Calculation 1

Let's assume the following values:

Product Selling Price ($SP$) = $20
Product Cost ($C$) = $10
Total Quantity Sold ($QP$) = 100

Using the formula:

Step 1: Calculate the Product Profit:

\[ PP = (20 - 10) \times 100 = 1000 \]

The Product Profit is $1000.

Example Calculation 2

Let's assume the following values:

Product Selling Price ($SP$) = $30
Product Cost ($C$) = $15
Total Quantity Sold ($QP$) = 50

Using the formula:

Step 1: Calculate the Product Profit:

\[ PP = (30 - 15) \times 50 = 750 \]

The Product Profit is $750.