Fixed and Variable Expenses and Profit

Front

What is profit?

Back

Profit is the amount of money you make after subtracting costs from revenue.

Front

How do you calculate profit?

Back

Profit = Revenue - Cost

Front

What are fixed expenses?

Back

Fixed expenses are costs that stay the same from week to week or month to month.

Front

What are variable expenses?

Back

Variable expenses are costs that change from week to week or month to month.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a monthly gym membership.

Front

Give an example of a variable expense.

Back

An example of a variable expense is groceries, which can change each month.

Front

If Layla buys a rocking chair for $42 and spends $16 to fix it, what is her total cost?

Back

Total cost = $42 + $16 = $58.

Front

If Layla sells the rocking chair for $85, what is her profit?

Back

Profit = $85 - $58 = $27.

Front

If Dexter buys a video game for $17.99 and sells it for $32.50, what is his profit?

Back

Profit = $32.50 - $17.99 = $14.51.

Front

What is an example of calculating profit?

Back

If you sell a toy for $20 that you bought for $15, your profit is $20 - $15 = $5.