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Here are 2 examples of calculating the profit of a round:

Example 1:

o your retail price = $20.00 / unit

o purchasing price = $7.50 / unit

o your initial order quantity = 50 units

o your second order quantity = 40 units

o change fee = $20

o demand realized = 20 units

Profit = $20.00 * 20 units [units sold = Minimum of demand and order quantity]

- $7.50 * 40 units [order quantity] - $20.00 [change fee]

= $80.00

Example 2:

o prices of Example 1 apply here

o your initial order quantity = 50 units

o you do not change your initial order quantity, so no change fee is applied

o demand realized = 100 units

Profit = $20.00 * 50 units [units sold = Minimum of demand and order quantity]

- $7.50 * 50 units [order quantity]

= $625.00

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