Question

Profit = (selling price per unit x quanitity sold) = expense per unit x quantitty sold) = _________ expenses

Answer 1

The expenses that are subtracted from the total revenues to calculate profits are called cost of goods sold (COGS).

Step-by-step explanation:

In business, the expenses that are subtracted from the total revenues to calculate profits are called cost of goods sold (COGS). COGS includes the expense per unit multiplied by the quantity sold. In this case, the expense per unit is equal to the average cost, and the quantity sold is the number of units sold.

To find the total expenses, you would multiply the expense per unit by the quantity sold.

For example, if the expense per unit is $5 and the quantity sold is 10, the total expenses would be $50.