Profit = Total Revenue – Total Cost
Total Revenue = Selling Price × Quantity Sold
Total Cost = Fixed Costs + Variable Costs
Gross Profit = Revenue – Cost of Goods Sold
Net Profit = Gross Profit – Operating Expenses – Taxes – Interest
Profit Margin = (Profit ÷ Revenue) × 100
If Profit is positive, there is a gain
If Profit is negative, there is a loss