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Higher Education – Undergraduate
Revenue, cost and profit
Revenue is money earned from sales. Profit is the amount left after the relevant costs are deducted. High revenue alone does not show whether an activity is profitable.
Worked example
A learner sells 20 notebooks at ₹50 each. Revenue is ₹1,000. If purchase and delivery costs total ₹750, profit is ₹250.
Try it yourself
If revenue stays ₹1,000 but costs rise to ₹900, what happens to profit?
Reveal the answer and reasoning
Profit falls to ₹100: ₹1,000 minus ₹900. State the period and included costs when comparing results.
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