Profit
In business and economics, profit is the financial gain realized when the total revenue generated from a business activity exceeds the total costs, taxes, and expenses incurred in sustaining that activity. It is the residual amount remaining after all costs have been subtracted from all revenues.
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Social Science
Empirical Science
Science
Economics
Economy
CORE Econ
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Introduction to Macroeconomics Course
Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
Ch.2 Technology and incentives - The Economy 2.0 Microeconomics @ CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
OpenStax
Intermediate Algebra @ OpenStax
Ch.2 Solving Linear Equations - Intermediate Algebra @ OpenStax
Algebra
Learn After
Calculating Gains for the First Adopter of a New Technology
Profit = Revenue - Costs
Firm-Customer Interaction for Profit Maximization with a Differentiated Product
Local Cafe Profitability
A small bakery generated $5,000 in sales during a single month. In that same month, its expenses were: $1,500 for ingredients, $1,000 for rent, and $2,000 for employee salaries. What was the bakery's profit for the month?
A technology company, 'TechForward,' reported total sales of $2 million last year with production and operational expenses of $1.8 million. A competing company, 'InnovateNow,' reported total sales of $1.5 million with expenses of $1.1 million. Based on this information, 'TechForward' was the more profitable company last year.
To calculate a firm's profit, one must first correctly identify all sources of revenue and all costs. For a company that manufactures and sells furniture, match each financial item below to the correct category it belongs to for the purpose of calculating profit.
Analyzing Paths to Profitability for a Startup
A company reports total revenues of $750,000 for the year. If its profit for that same year was $200,000, its total costs must have been $____.
A t-shirt company currently generates $10,000 in monthly revenue with total costs of $7,000. The company is considering launching a new advertising campaign that is expected to increase revenue by 30%. However, the campaign itself will cost an additional $2,500 per month. Based on these figures, how would the advertising campaign affect the company's monthly profit?
Strategic Profit Analysis for a Manufacturing Firm
A toy company increased its total sales revenue from $500,000 in Year 1 to $600,000 in Year 2. This means the company's profit must have been higher in Year 2 than in Year 1.
Revenue Growth vs. Profit Growth
Example: Solving a Business Profit Application with a Linear Inequality
Example: Translating and Solving a Profit Inequality for a Service Business
Example: Translating and Solving a Profit Inequality for a Maintenance Business