Sales, Revenue and Costs

The Profit Formula:

Profit = Sales Revenue - Total Costs

Sales Revenue:

• This is the amount of money the business will generate by selling its goods and services.
• It does not include the cash that is generated in any other way, e.g. a bank loan, an investment or selling of used machinery. 

Sales Revenue = Sales Volume x Selling Price

Sales Volume - The number of units the business expects to sell. For service-based businesses, it would be the number of customers.

Selling Price - This is the amount of money that the customer…