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Is a business making a profit when the revenue is less than its cost?
Wiki User
∙ 10y ago
NO, if reveneu is less then cost then company is in loss as following forumula:
Net profit (loss) = Revenue - Cost
Wiki User
∙ 10y ago
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Why does average cost include profit?
it doesn't cost is cost revenue is revenue
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
What is business profit?
Profit is revenue, generated through sale of products and services, minus the costs of producing/distributing those products and services. When the revenue generated in a period of time exceeds the company's costs, the company has achieved a profit. If the costs incurred by the company exceed the revenue generated in a period of time, the company has a loss.
The difference between total revenue and total cost?
profit or loss
If there are no profits in competitive equilibrium why do firms produce how can they stay in business?
why do firm stay in business if profit is=0In economic profit is revenue minus all costs,including implicit costs,like the opportunity cost of the owner's time and money.In the zero profit equilibrium,firms earn enough revenue to cover these costs.by Abdul hanan tareen
Why is cost important in business?
because the lower the cost the more profit the business makes profit = revenue - cost
Cost of revenue?
The cost of revenue is the money spent to make profit for a business. All business have to spend money to make money.
How business make a profit?
by selling goods at higher revenue than the cost it was paid for.
Is income revenue?
Gross income could be considered revenue. In business, revenue is received payments. Profit is revenue less expenses and cost of goods sold, if applicable.
Why does average cost include profit?
it doesn't cost is cost revenue is revenue
If the total revenue is 3000 cost of goods is 1500 and total selling expense is 500 what is the profit for the business?
If total revenue is 3000, the cost of goods is 1500, and total selling expense is 500 then the profit made is 1000.
How are cost's revenue and profit linked together?
These all linked together because these are all important for the business.
If total Revenue is 3000 Cost of Goods is 1500 and total Selling Expense is 500 what is the Profit for the business?
If total revenue is 3000, the cost of goods is 1500, and total selling expense is 500 then the profit made is 1000.
What is the equation to find gross profit?
Total revenue - Cost of sales (purchasing and making of the goods sold)
How does cost affect revenue and profitability?
There could be a variety of answers to this question, depending on what perspectives you use to answer them. ( accounting, economics etc ). Using my understanding of Economics, it's important to first have an equation to link all these variables. Profit = Revenue - Cost. This is called the profit equation, where profit equals revenue minus cost. Revenue is the sales that you obtain from day to day sales. It's expressed in a monetary value. For example, if I am able to sell 10 hotdogs today at US dollar 5 for each hotdog, then my revenue for the day will be US Dollars 50. However this is my revenue and not my profit, as I incurred cost while earning this revenue. Lets say the cost of this business is US Dollars 3. If this is the case the profit will be 50 - 3 which equals 47. Hence profit is 47. This equation shows that an increase in cost, can reduce the profit. At some instances, the increase in cost can increase revenue, depending on the price that you are selling and also the quantity sold. This will depend on how large the increase is. Generally if Revenue is more than cost, there is profit, while if Cost is more than revenue that is lost. If Revenue equals Cost, there is break even. This means that the profit is zero. Hope this helps. (cheong@bgymail.gd.cn)
How do you find projected profit?
(Projected revenue) - (Extended Cost) (Projected revenue) - (Extended Cost)
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
