Calculating Profit: Revenue and Cost Analysis

What is profit in terms of personal financial literacy?

• The selling price of an item

• The initial cost of an item

• The amount left after expenses are subtracted from revenue

• The total amount of money earned from a job

What is the first step in calculating profit?

• None of the above

• Calculating total revenue

• Determining the selling price

• Identifying total costs

What does the revenue represent in the context of profit calculation?

• The cost of materials

• The selling price of the product

• The total time spent

• The profit earned

What must be subtracted from the selling price to determine profit?

• The total costs incurred

• The initial selling price

• The time spent on the project

• The revenue generated

If the total costs are $29 and the selling price is $50, how much is the revenue?

• $29

• $50

• $21

• $79

If an item is sold for $50 and the costs were $29, what is the profit?

• $50

• $29

• $79

• $21

How does time impact the calculation of profit?

• Reduces the cost price

• Increases the selling price

• Has no impact on financial calculations

• Affects the hourly earning from the project

What additional cost did the teacher mention that is often overlooked?

• Interest on borrowed money

• Taxes on sales

• Time spent on the project

• Transportation costs

What would be the hourly profit if it took 7 hours to fix the toy and the profit was $21?

• $10 per hour

• $21 per hour

• $7 per hour

• $3 per hour

If the costs were $29 and the selling price was $50, what would be the profit per hour if it took 3 hours to complete?

• $7 per hour

• $10 per hour

• $15 per hour

• $21 per hour