Profit Flashcards
What is profit?
Profit is the difference between the revenue and total costs of a business.
What is the calculation for profit?
Profit = revenue - total costs
The revenue of a business is £10,000 and the total costs for a business is £3500. What is the profit for the business?
Profit = revenue - total costs Profit = £10000 - £3500 Profit = £6500
The revenue of Jamie’s barbers is £14500, and his barbers has the following monthly costs, £400 loan repayment, £450 rent, £560 business rates, and £700 salary. What is the profit for Jamie’s barbers?
Total costs = £400 + £450 + £560 + £700 = £2110
Profit = revenue - total costs Profit = £14500 - £2110 Profit = £12390
Poppy has a scarf that sells for £25, and she sells 300 scarfs in the first month. The second month she sells 780 scarfs. Her rent is £500, her loan repayment is £300, her salary is £360, and her business rates are £480. What is her profit over the two months?
Revenue = selling price x quantity sold Revenue = £25 x (300 + 780) = £25 x 1080 = £27000
Total costs = £500 + £300 + £360 + £480 = £1640
Profit = revenue - total costs Profit = £27000 - £1640 Profit = £25360
