The Building Block of Business The Economics of One Unit of Sale. Economics of One Unit of Sale. Entrepreneurs use profits: To pay themselves To expand their businesses To start other businesses Retail: one unit or item (i.e., one watch) Manufacturing: one order (any quality)
Retail: one unit or item (i.e., one watch)
Manufacturing: one order (any quality)
Service: one hour of service time or a standard block of time devoted to a task (i.e., one hour of lawn-mowing service)
Wholesale: a dozen of an item (i.e., 12 watches)
Selling Price per Unit Revenue
- COGS per Unit -COGS
Gross Profit per Unit Gross Profit
Total Revenue – Total Cost of Goods Sold = Total Gross Profit
Average sale per customer
- Average cost of sale per customer
Average gross profit per customer
-How to start and operate a small business
Manufacturing Business: unit = 1 card
Selling Price per Unit: $4.50
Cost of Goods Sold per Unit: $2.50
Gross Profit per Unit:
Five breakthrough steps entrepreneurs can take are:
The cost of selling “one additional unit” for a product-based business.
The figuring of markup and profit around a business’s unit of sale.
Total sales revenue minus total cost of goods sold.
The amount of product (or time, in a service business) from which a business figures its operations and profit; considered the “building block” of a business.