Question

The selling price of each product sold in a furnishing showroom and the number of units of each of these products sold during a period of one month are given below. The rental cost of the showroom is $225 (fixed cost), and the other costs incurred are included in the cost/unit.

Product code	Price/Unit($)	Cost/Unit($)	Units
AD12	232	162.40	12
FD23	334	233.80	24
BD34	342	239.40	5
AG56	267	186.90	11
ET76	345	241.50	15
FA56	235	164.50	23

Display your use of the SUMPRODUCT function and find the profit earned by the showroom in a month. I expect you to copy and paste your excel work in here which shows the profit number as well the formulas used in your excel file. You can use =formulatext() function in excel to show your formulas.

Answer 1

We first compute the profit per unit for each product code here as: (The formulas used in EXCEL are given here )

Profit / unit = Price / unit - Cost / unit

Now we will use the SUMPRODUCT() formula to get the total profit here as: (in continuation to the above part )

Therefore $7,808.1 is the required total profit here.