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

1618 Views

See similar Business Studies GCSE tutors

Related Business Studies GCSE answers

All answers ▸

Explain one way in which Five Guys could achieve economies of scale


Describe the features of the Launch stage of the product life cycle (2)


Explain one benefit of providing induction training for employees (3 marks).


Explain two benefits to a business of using part-time staff


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences