Question

How do you calculate business profit?

Answer 1

Answer: B. Subtract costs from revenue.

Explanation: The profit generated or earned by a business refers to the excess of cost incurred in running the business or cost involved in production. Therefore, the revenue generated from sales must exceed the cost incurred in the production of the sold goods before business profit can be realized. The revenue is the total amount realized from sales

In simple terms,

Business profit can be expressed as ;

Total Revenue - Total expenses (cost)