Tuesday, January 2, 2018

Question about inventory-based businesses and profits

Assume we've the following scenario:

You invest US$5,000 upfront to manufacture 500 product units and each product costs US$10 including shipping and everything.

You mark up each product to US$20 and sell it at that.

Now, assume in a perfect scenario, you sell all 500 units, so total revenue is 500 units * US$20 = US$10,000.
So, the profit is US$10,000 - US$5,000 = US$5,000

So, now you need to restock the products right? So you re-invest the US$5,000 profits back into buying 500 product...

Question about inventory-based businesses and profits

from Question about inventory-based businesses and profits

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