How Do Businesses Make Profit?
Accountants also call it net income (SEC Beginners' Guide to Financial Statements).
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1.What is profit?
Accountants also call it net income (SEC Beginners' Guide to Financial Statements).
2.Which are variable costs?
Variable costs change with every cup; fixed costs stay the same whether you sell one coffee or a thousand.
3.Marge sells 2,000 coffees at 3, with 1 variable cost per cup and 3,000 fixed. What is her profit?
Each coffee leaves her 2: 2 times 2,000 is 4,000, minus 3,000 fixed costs.
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Sources (2)
- U.S. Securities and Exchange Commission: Beginners' Guide to Financial Statements (veröffentlicht 12.1.2014, zuletzt geprüft 6.2.2017)
- Eigene Berechnung (synthetische Cafes, Python)
Education only. Not financial advice.