Question

Which is correct when finding profit?

Question 1 options:

Revenue - costs = profit


Time + labor = profit


e

Revenue + costs = profit


Profit cannot be determined by a simple formula.

Answer 1

Hi there! The revenue is the amount of money you make. However, you have to subtract the costs, because you have to buy different things, so you won't get 100% of the revenue. You would have to subtract costs from the revenue to get your profit. Therefore, the answer is A: revenue - costs = profit.