Profit = Revenue – Cost
Revenue = Selling Price × Quantity Sold
Cost = Total Expenses
If Revenue > Cost, there is a profit
If Revenue < Cost, there is a loss
Profit Margin = (Profit ÷ Revenue) × 100
Gross Profit = Revenue – Cost of Goods Sold
Net Profit = Gross Profit – Operating Expenses – Taxes – Interest
Unit Profit = Selling Price per Unit – Cost per Unit
Total Profit = Unit Profit × Number of Units Sold