4th Grade Math Personal Financial Literacy: Calculating Profit

The example that the speaker is using concerns 

• fixing up an old car and selling it

• fixing an old wind-up toy and selling it

• running a business involving paint

Revenue means _______________

• how much we want to ask people to pay for the item in the future.

• how much the item cost us when we bought it.

• selling price, or how much $ we sold an item for.

If we sell an item for $50, that means we made a $50 profit.  True or False?

• True

• False

To figure out profit, we can't just consider the selling price, or revenue.  We also have to consider the ________.

• size

• cost

• color

You can tell from the example that

• there is only one cost when calculating profit.

• profit means the same thing as revenue.

• there can be multiple costs when calculating profit.

In the speaker's example of the wind-up toy, what was the total cost of the item?

• $29

• $5

• $9

• $15

In this case (the wind-up toy example), the profit will be _______.

• $29

• $50

• $21

So, profit means how much money you have left over after you gain revenue from a sale, considering the cost you paid for it.  The formula for profit is:

• Profit - Revenue = Cost

• Profit = Revenue - Cost

• Profit + Cost = Revenue