Total Revenue Cost and Profit
Revenue is the amount received from sales.
About 20 minutes, plus any extended practice
Supplied materials
- Paper and pencil; a calculator is optional.
- Calculation rule: Profit = price × units sold − stated total cost.
- Fictional case 1: Fictional price $5, sold 8, total cost $27. Profit?
- Fictional case 2: Fictional price $4, sold 9, total cost $25. Profit?
- Fictional case 3: Fictional price $6, sold 7, total cost $30. Profit?
- Fictional case 4: Fictional price $3, sold 12, total cost $20. Profit?
- Fictional case 5: Fictional price $8, sold 5, total cost $34. Profit?
- Fictional case 6: Fictional price $7, sold 6, total cost $29. Profit?
- Fictional case 7: Fictional price $9, sold 4, total cost $31. Profit?
- Fictional case 8: Fictional price $2, sold 15, total cost $18. Profit?
Learn the idea
Revenue is the amount received from sales. Cost records resources paid for production. In the fictional one-product model, profit equals revenue minus total cost, with revenue equal to price times units sold. Profit is not the same as cash balance, and the model omits taxes and other business complexities.
Profit = price × units sold − stated total cost.
Work from the stated fictional inputs and show each operation. Report the required unit and retain the model’s conditions. A calculated change can describe this exercise accurately without proving a causal policy effect in the real world. Check what has been omitted before applying a numerical model to a decision.
- Read the stated fictional case and identify the required output.
- Profit = price × units sold − stated total cost.
- Write the values into the rule, calculate and report the required unit.
- Explain one condition the calculation does not establish about actual society.
See the method in action
Fictional price $5, sold 8 units, total cost $27. First find revenue: $5 × 8 = $40. Then subtract total cost: $40 − $27 = $13 profit. Reporting $40 would confuse revenue with profit; adding the cost would reverse the rule. The calculation uses only the supplied price, sales and cost. It does not establish cash balance, tax liability or a real business forecast.
Check your reasoning
Your answer is temporary and is not saved to an account. Download your current answer before leaving or reloading. Written work on paper or in another app stays in your own file.
Helpful tips
- Profit = price × units sold − stated total cost.
- Keep the stated unit and model conditions. A calculated output does not establish a real-world causal effect.
See the answer and explanation
$11
Profit = price × units sold − stated total cost. Calculation: 4*9-25 = $11. This is a result for the supplied fictional inputs, not an observed statistic or guaranteed forecast.
Take it further
Fictional price $2, sold 15, total cost $18. Profit? Expected: 2*15-18 = $12. Show the operation and state one model limitation.
Nothing here is saved to an account or sent to a teacher. The answer download includes your current choice and any checked feedback. It does not include choices from the separate More practice section. Download that section separately.
More practice: try new cases
Choose an answer for each problem. Explain your method on paper, then use the feedback to decide what to revisit.
Your choices are temporary. Feedback appears after you check all the answers.
Nothing here is saved to an account or sent to a teacher. Keep your own notes or download them before leaving. The score describes these questions; it does not certify subject mastery.
Check the subject sources
These LifeStarter passages, scenarios and exercises are authored for this Academy with AI assistance and review. External resources keep their publishers’ terms. A grade label suggests a starting level; it does not establish alignment with your school’s complete requirements.