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How do you calculate business profit?

A. Multiply revenue by costs.
B. Subtract costs from revenue.
C. Add costs to revenue.
D. Subtract revenue from costs.
Please select the best answer from the choices nrovider

User Souvickcse
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1 Answer

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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)

User Timir
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