How do you calculate the total annual profit if the cost per unit is $0.15, the profit margin is 5%, and 100 billion units are sold per year?

Answered by Sir Yahya

Here is the step-by-step calculation to find the total annual profit: * **Profit per unit:** $0.15 \text{ (Cost)} \times 0.05 \text{ (5\% Margin)} = \$0.0075 \text{ (or } 0.75 \text{ cents)}$ * **Units sold per year:** $100,000,000,000 \text{ (100 billion)}$ * **Total Annual Profit:** $100,000,000,000 \times \$0.0075 = \mathbf{\$750,000,000} \text{ (or } \mathbf{\$750 \text{ million)}}$ *(Note: If calculated in cents, $100 \text{ billion} \times 0.75 \text{ cents} = 75 \text{ billion cents}$, which equals **$750 million**).*