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
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