A manufacturer has a monthly fixed cost of USD 40,000 and a production cost of USD 10 for each unit produced. The product sells for USD 25 per unit. If the manufacturer produces and sells 6,000 units one month, then his profit is

To calculate the manufacturer's profit, we need to consider both the revenue and the total costs.

### Given:
- Fixed cost = USD 40,000
- Production cost per unit = USD 10
- Selling price per unit = USD 25
- Units produced and sold = 6,000

### Step 1: Calculate the total revenue.
\[
\text{Revenue} = \text{Units sold} \times \text{Selling price per unit} = 6,000 \times 25 = 150,000
\]

### Step 2: Calculate the total variable cost (production cost).
\[
\text{Total variable cost} = \text{Units produced} \times \text{Production cost per unit} = 6,000 \times 10 = 60,000
\]

### Step 3: Calculate the total cost (fixed cost + variable cost).
\[
\text{Total cost} = \text{Fixed cost} + \text{Total variable cost} = 40,000 + 60,000 = 100,000
\]

### Step 4: Calculate the profit.
\[
\text{Profit} = \text{Revenue} - \text{Total cost} = 150,000 - 100,000 = 50,000
\]

Thus, the manufacturer's profit is **USD 50,000**.

Would you like further details or have any questions?

Here are some related questions:
1. How would the profit change if the fixed cost increased by 10%?
2. What is the break-even point for this manufacturer in terms of units sold?
3. How would the profit change if the selling price was reduced by USD 5 per unit?
4. What is the profit if only 4,000 units are produced and sold?
5. How would the profit change if production costs increased by 20%?

**Tip:** To maximize profit, manufacturers often balance production costs, pricing strategies, and fixed costs management.

Learn how to calculate the profit for a manufacturer with a fixed cost of USD 40,000, a production cost of USD 10 per unit, and a selling price of USD 25 per unit. This example covers core algebraic concepts and is ideal for students in Grades 8-10.

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