Rosie’s Flower Shop bought 20 bundles of a dozen roses each for $9.00 per bundle. The shop then re-bundled the roses into half dozen bundles and sold the half dozen bundles for $12.00 each. What was the initial unit cost (per rose) and what was the gross profit per unit (per rose) after the re-bundling?

A profit is the gain you receive on an investment you make.  This includes interest earned on a savings account.  However, in business, a profit is the amount made above and beyond what it cost you to buy a product (unit cost).  For example, if you buy pens to sell and you buy 50 pens for $5.00 each and then you sell each pen for $12.00, when you sell a pen for $12.00 you then subtract your cost of $5.00 leaving you a profit of $7.00 (also referred to as the gross profit). From the gross profit you must then subtract your overhead expenses (or operating expenses) leaving you a net profit.... Show more

A profit is the gain you receive on an investment you make.  This includes interest earned on a savings account.  However, in business, a profit is the amount made above and beyond what it cost you to buy a product (unit cost).  For example, if you buy pens to sell and you buy 50 pens for $5.00 each and then you sell each pen for $12.00, when you sell a pen for $12.00 you then subtract your cost of $5.00 leaving you a profit of $7.00 (also referred to as the gross profit).

From the gross profit you must then subtract your overhead expenses (or operating expenses) leaving you a net profit.  In order for a business to survive it must have a continuous net profit and very little net loss (when the overhead expenses are greater than the gross profit).

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