Calculate Profit 4.10b

Front

What is profit?

Back

Profit is the amount of money a business makes after subtracting all costs and expenses from the total revenue.

Front

How do you calculate profit?

Back

Profit = Total Revenue - Total Costs

Front

If you buy an item for $20 and sell it for $30, what is your profit?

Back

Your profit is $10.

Front

What are costs in a business?

Back

Costs are the expenses incurred in the production or sale of goods and services.

Front

What is total revenue?

Back

Total revenue is the total amount of money received from sales before any costs are subtracted.

Front

If you sell 10 items for $5 each, what is your total revenue?

Back

Your total revenue is $50.

Front

What is the selling price?

Back

The selling price is the amount of money a customer pays to purchase a product.

Front

If you spend $15 on supplies and sell your product for $25, what is your profit?

Back

Your profit is $10.

Front

What does it mean to break even?

Back

Breaking even means that total revenue equals total costs, resulting in no profit or loss.

Front

If your total costs are $40 and your total revenue is $40, what is your profit?

Back

Your profit is $0; you broke even.