Karen is selling carnations at her school during Valentine's week. She purchased 1,000 carnations for $250.00. She is selling each carnation (along with a card that cost her 0.10) for $1.00. Fixed cost for Karen = rent and delivery of $100.00. What is Karen's gross profit per unit?

Question

Yael

Business

27 April, 02:22

Karen is selling carnations at her school during Valentine's week. She purchased 1,000 carnations for $250.00. She is selling each carnation (along with a card that cost her 0.10) for $1.00. Fixed cost for Karen = rent and delivery of $100.00. What is Karen's gross profit per unit?

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Isabella Reed · Answer 1

Carnation cost: 250 / 1000 = $0.25 per flower

Rent and delivery cost: $100 / 1000 = $0.1 per flower

Card cost: $0.1

Total Expenditure = $0.45 per flower

Gross profit per unit = $1.00 - $0.45 = $0.65 per unit sold