Answer: Profit = Revenue - Production cost.
Explanation:
There is a correlation between the volume produced and sold and its impact on revenue, cost, and profit. These relationships are termed the revenue function, cost function, and profit function. These connections can be represented in terms of tables, graphs, or algebraic equations.
The profit is the difference between revenue and production cost.
Revenue is the product of the price per unit times the number of units sold.
The cost function is composed of the fixed cost component that remains the same despite the volume of units, and the variable cost component times the number of items.
