Revenue, Costs, and Profit — Practice Questions

Revenue, Costs, and ProfitEntrepreneurship and Business — The math that decides whether a business survives.The survival math of any business comes down to three words: revenue, costs, and profit.

Revenue: the total money from sales. The top line.

Costs: everything you spend to operate.

Profit: revenue minus costs. What is actually kept.

Fixed vs variable costs: Fixed costs stay the same regardless of sales (rent). Variable costs rise with each sale (materials).Profit margin: Profit as a percent of revenue. It shows how much of each sales dollar you keep.Break even is the sales level where revenue covers total costs. Below it you lose money, above it you profit.12 practice questions with explanations. Free, and no account is needed to start.