Could someone please explain the equation which is used for profit?

Profits=income-costs

There are hundreds of "formulas" for profit.

Profit = Revenue - Cost

Suppose you have a lemonade stand.

It costs you 10 cents to make a glass of lemonade. You charge each customer 25 cents a glass. Therefore your profit is 15 cents per glass.

15 = 25 - 10

http://earthmath.kennesaw.edu/main_site/review_topics/economics.htm

Sure! The equation for calculating profit is relatively straightforward. Profit is the financial gain obtained by subtracting the total expenses from the total revenue of a business or individual.

Profit = Revenue - Expenses

To calculate profit, you need two pieces of information: revenue and expenses. Let's break it down further:

1. Revenue: This refers to the total income generated from the sale of goods or services. It includes all the money earned from selling products, providing services, or any other sources of income. Revenue can be calculated by multiplying the quantity of goods or services sold by their respective prices.

2. Expenses: These are the costs incurred in running a business or carrying out an activity. Expenses include costs such as production expenses, operating expenses, employee salaries, utilities, rent, taxes, and other overhead costs.

Once you have both the revenue and expenses, you can plug them into the profit equation to calculate the financial gain or loss. By subtracting the total expenses from the total revenue, you can determine whether the business has made a profit or incurred a loss during a given period.

It's important to note that profit is a measure of financial gain, whereas revenue represents the total income generated before deducting any expenses. Profitability is a key indicator of the success and sustainability of a business.