Question

Doug's printing business had a revenue of $6,000 and operating costs of $4,000. How much profit did his business make?

$2,000
$6,000
$4,000
$10,000

Answer 1

$2,000 because operating costs means how much money he needs to keep the business going and revenue is how much he makes

Answer 2

Option A $2,000 is the correct answer.

Explanation:

Doug's printing business had a revenue of $6,000 and operating cost of $4,000.

First we understand revenue and operating cost.

Operating cost is expenses of the company which are related to production and anther operation of the business.

Revenue is the income from the sale of goods.

Now we have to calculate the profit that his business made.

Profit = Revenue - Operating costs

P = $6,000 - $4,000 = $2,000

Doug's printing business made profit of $2,000.