Enter the price per unit ($), the cost per unit ($), and the number of units into the calculator to determine the Incremental Profit.

## Incremental Profit Formula

The following formula is used to calculate the Incremental Profit.

IP = (PPU - CPU) * U
• Where IP is the Incremental Profit ($) • PPU is the price per unit ($)
• CPU is the cost per unit ($) • U is the number of units To calculate incremental profit, subtract the cost per unit from the price per unit, then multiply by the number of units. ## How to Calculate Incremental Profit? The following example problems outline how to calculate Incremental Profit. Example Problem #1 1. First, determine the price per unit ($). In this example, the price per unit ($) is given as 600 . 2. Next, determine the cost per unit ($). For this problem, the cost per unit ($) is given as 300 . 3. Next, determine the number of units. In this case, the number of units is found to be 20. 4. Finally, calculate the Incremental Profit using the formula above: IP = (PPU – CPU) * U Inserting the values from above yields: IP = (600 – 300) * 20 = 6000 ($)

Example Problem #2

The variables needed for this problem are provided below:

price per unit ($) = 150 cost per unit ($) = 40

number of units = 15

Entering these values and solving gives:

IP = (150-40) * 15  =1650 (\$)