8A Financial Literacy

Which of the following is the best definition of PROFIT?

• The total amount of income a business makes from selling products or services
• The amount of money a business has left over after paying for their costs.
• The total amount of money a business spends.

Which of the following is the equation for figuring out PROFIT?

• Profit = Revenue - Cost
• Profit = Cost - Revenue
• Revenue = Profit - Cost
• Costs = Profit - Revenue

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total REVENUE?

• $25

• $225

• $375

• $750

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total COST?

• $25

• $225

• $375

• $750

Kelly makes and sells quilted blankets out of her home. She charges $50 per blanket. For each blanket she makes, she must spend $1 on thread, $2 in electricity and $12 on cloth. This month she made and sold 15 blankets. What is Kelly's total PROFIT?

• $25

• $225

• $375

• $750

Flat tire repair -

• Fixed expense

• Variable expense

Monthly phone bill

• Fixed expense

• Variable expense

House rent or monthly payment

• Fixed expense

• variable expense

Monthly grocery bill

• Fixed expense

• Variable expense

Monthly gas expense

• Fixed expense

• Variable expense