Calculate the additional weekly profit the business would make if it produced and sold 5000 novelty mugs every week.

Selling price of novelty mug= £4; Cost of making mug= £2; Distribution cost= £50 for every 100 mugs sold. Therefore, 1) 5000 x £4= £20,000; 2) 5000 x £2= £10,000 3) £20,000- £10,000 = £10,000; 4) 5000/100= 50; 5) 50 x 50= £2,500; 6) £10,000- £2,500=£7,500

JB
Answered by Jack B. Business Studies tutor

1887 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

The Marketing Mix is a useful tool made up of four elements called the four P's. Define the four P's with examples.


What is the function of a SWOT analysis?


What are the advantages of doing business as a sole trader?


The external environment in which businesses operate can have a significant effect on their success. To what extent do you think that the external environments in markets are favorable for businesses at the moment? Justify your answer with reference to ex


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning