Understanding Profit

The video tutorial explains the concept of profit, which is the money made after subtracting expenses from income. It uses two examples: Martha's lemonade stand and Devon's cookie sales, to illustrate how to calculate profit. Martha's income was $10, but after $5 in expenses, her profit was $5. Devon's income was $24, and after $16 in expenses, his profit was $8. The tutorial emphasizes understanding the difference between income and profit.

What is the definition of profit?

• The total number of products sold

• The amount of money a person or business makes

• The total amount of money spent on a business

• The amount of money saved in a bank

How much did Martha sell each glass of lemonade for?

• $2.00

• $1.00

• $1.50

• $0.50

What were Martha's total expenses for making the lemonade?

• $3

• $2

• $10

• $5

How do you calculate profit?

• Income plus expenses

• Income minus expenses

• Expenses minus income

• Income times expenses

What was Martha's profit from selling lemonade?

• $2

• $5

• $3

• $10

How many cookies did Devon sell?

• 20

• 15

• 12

• 10

What was the price per cookie that Devon sold?

• $2.50

• $2

• $1.50

• $1

What was the total cost of ingredients for Devon's cookies?

• $14

• $12

• $10

• $16

What was Devon's total income from selling cookies?

• $26

• $22

• $24

• $20

What was Devon's profit from selling cookies?

• $9

• $8

• $7

• $6