A tech startup produces smartwatches. The cost to manufacture one smartwatch is $45, and they are sold for $120 each. If the company sells 2,000 units, what is their total profit?

Thu, 07 May 2026 00:02:22 +0000

**Why Smartwatches Are Redefining Wearable Tech — and How Startups Are Balancing Innovation with Profit** In a world increasingly driven by health, connectivity, and quiet efficiency, a quiet revolution is unfolding: A tech startup produces sleek smartwatches designed not just to track steps and heart rate, but to integrate seamlessly into daily life. At the heart of this shift is a compelling economic model that captures industry attention. With a manufacturing cost of just $45 per unit and a retail price of $120, companies selling 2,000 units represent a significant market moment — one that blends smart design with scalable profitability. ### The Smartwatch Market: Where Demand Meets Manufacturing Efficiency Smartwatches are no longer niche gadgets — they’re fast becoming essential accessories for U.S. consumers. With rising focus on personal wellness, digital mindfulness, and always-on connectivity, the demand for reliable, integrated wearable tech continues to climb. A startup market entry at $45 material cost and $120 retail price sets a competitive price point, balancing affordability with perceived value. Selling 2,000 units instantly creates momentum, positioning the product at a pivotal scale where economies of scale begin to amplify margin potential.