Learning objective
Explain revenue, expenses, and profit, reproduce the worked example and justify a decision in the case study.
Before you begin
Read a short instruction; for calculations, add, subtract and multiply.
Understand
Profit measures what remains after expenses are subtracted from revenue.
Worked example
Sales: 10,000 HTG. Expenses: 6,000 HTG. Profit: 10,000 − 6,000 = 4,000 HTG.
Analysis and common mistakes
Profit margin divides profit by revenue: 4,000 / 10,000 = 40%. It differs from markup on cost, here 4,000 / 6,000 ≈ 66.7%. Confusing them changes a calculated price.
Case study — reasoning
If expenses rise by 1,000 HTG while sales stay constant, profit becomes 3,000 HTG and margin 30%. Sales growth alone does not guarantee profit growth.
Knowledge check
Summary
Profit measures what remains after expenses are subtracted from revenue.
Sources for further study and verification
AI-assisted draft · Educator review not completed · Unofficial supplementary resource