In businesses involving manufacturing companies, they conduct economic analysis on their capital costs and profit. By doing this, they would have an outlook on their breakeven time when they could recover all their initial capital costs.
Net profit is equal to the amount of money of sales minus the variable and fixed costs. These costs include equipment and installation costs, maintenance costs, cost of acquiring the raw data and all the other costs incurred just to produce the final product. Therefore, the net profit is equal to
Net profit = (Price per unit*Number of Units) - (Variable + Fixed Costs)
Net Profit = ($15.35*2000) - $1,690
Net Profit = $305,310
