To begin, designate names for cells B3 and B4. Select B3, navigate to the Formulas tab on the Excel ribbon, and choose Define Name. Assign the name "Revenues" and repeat the process for B4, naming it "DirectCosts."
Next, in cell B5, input the subtraction formula to compute Direct Costs subtracted from Revenues. Use the formula "=Revenues - DirectCosts." Complete the process by pressing Enter to calculate the result.
So, the formula to use is =revenues-direct costs.
For example, the result of the formula will look like this:
revenues directcosts profit
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