Financial Literacy

Front

What is profit?

Back

Profit is the amount of money a business makes after subtracting its expenses from its revenue.

Front

How do you calculate profit?

Back

Profit = Total Revenue - Total Expenses.

Front

If a shirt costs $4 to make and sells for $10, what is the profit per shirt?

Back

Profit per shirt = $10 - $4 = $6.

Front

What is a variable expense?

Back

A variable expense is a cost that can change depending on how much you use or consume, like entertainment or groceries.

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change, such as rent or a car payment.

Front

If you sell 50 cupcakes for $2 each and they cost $1 each to make, what is your total profit?

Back

Total profit = (Selling price - Cost price) x Quantity = ($2 - $1) x 50 = $50.

Front

What is total revenue?

Back

Total revenue is the total amount of money received from sales before any expenses are deducted.

Front

If you sell 327 shirts for $10 each, what is your total revenue?

Back

Total revenue = Selling price x Quantity = $10 x 327 = $3,270.

Front

What are supplies in a business?

Back

Supplies are the materials needed to produce goods or services, like beads for bracelets or fabric for shirts.

Front

If Reagan spent $12 on beads and $3 on wire, what were her total expenses?

Back

Total expenses = $12 + $3 = $15.