Therefore the monthly order should be 435 Step 3 b Assume that each unit demanded generates 65 in revenue and that each unit ordered costs 50 How much will the company gain or lose in a month if it places an order based on your answer to part a and the actual demand for the item is 300 units To determine if there is a gain or loss the revenue and the total cost must be calculated If the revenue the amount of money made is greater than the cost for the company to order the units then a profit is made If the revenue is less than the cost to order the units then the company will experience a loss Recall the process to determine the total cost total cost cost of each unit number of units We determined that the company should order 435 units in a given month and are given that each unit costs the company 50 Find the total cost in dollars to order 435 units total cost cost of each unit number of units 50 435 units The revenue will be the product of the price each unit sells for and the number of units sold revenue price of each unit sold number of units sold For this month it was given that the demand is for 300 units and each sells for 65 Find the revenue in dollars for 300 units revenue price of each unit sold number of units sold 65 300