A company produces widgets at a cost of $5 each and sells them for $12 each. If the company sells 100 widgets, what is the profit?
["How Widget Manufacturing Drives Profitable Returns: Cost, Pricing, and Profit Calculation", "In the competitive world of manufacturing, understanding the fundamentals of cost, pricing, and profit is essential for business success. Consider a fictional company that produces high-quality widgets — each unit costs $5 to manufacture and sells for $12. If the company sells 100 widgets in a given period, one simple calculation reveals the substantial profit generated.", "### Understanding Cost and Revenue", "Each widget costs $5 to produce. At a production volume of 100 widgets, the total manufacturing cost is:", "[\n\ ext{Total Cost} = 100 \ ext{ widgets} \ imes $5 = $500\n]", "The company sells each widget for $12, so total sales revenue becomes:", "[\n\ ext{Total Revenue} = 100 \ ext{ widgets} \ imes $12 = $1,200\n]", "### Calculating Profit", "Profit is determined by subtracting total costs from total revenue:", "[\n\ ext{Profit} = \ ext{Total Revenue} - \ ext{Total Cost}\n]\n[\n\ ext{Profit} = $1,200 - $500 = $700\n]", "Therefore, selling 100 widgets at a $7 per unit markup yields a $700 profit.", "### The Power of Margin in Manual Manufacturing", "This example highlights how even basic manufacturing operations can generate healthy margins with disciplined cost control and smart pricing. At only $5 per unit, the low production cost enables rapid scaling and strong profitability when sales volume increases. Companies that master such pricing strategies often find themselves in solid financial positions with minimal overhead.", "### Conclusion", "The widget production case — $5 cost, $12 selling price, 100 units sold — delivers $700 in profit. This clear, scalable model illustrates the value of margin optimization in manufacturing. Whether you're a startup or an established player, keeping production costs low while maximizing selling price is a proven path to sustainable profitability.", "Key takeaway: Proper cost management and strategic pricing generate substantial profits — even on simple goods."]
