Make big profit

One Response to “Sales / Profit?”

1. Just some guy, on December 2nd, 2010 at 8:02 pm Said:

   SALES has to do with the total amount of money received in exchange for products or services. However, since it always costs an itiatial amount of money for the seller to obtain those products or prepare those services in the first place (before you can actually begin selling them), your PROFIT is the amount of money that you make ABOVE those initial costs.

   For example: I want to set up a lemonade stand. I spend $10.00 purchasing some lemons, sugar, cups, etc. in order to set up the stand and begin selling. At the end of the day, I’ve sold $15.00 worth of lemonade… that’s the amount of SALES. However, since I spent $10.00 to get started, I’m actually only $5.00 ahead (15 minus 10); my PROFIT is $5.00.

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