Question

Grant started a business this year. He earned $200,000 in revenues and had $150,000 in expenses. His other alternative would have been to go back to his old job, where he earned $70,000. What are Grant's "true" profits from his business

Answer 1

Answer:

Profit from the business = $50000.

Explanation:

Total revenue from the business = $200000

The total cost that occurred in business = $150000

Now we have to calculate the true profit from the business. So, it can be calculated by subtracting the total cost from the total revenue.

Below is the formula to find the profit.

Profit = total revenue – total cost

Now insert the given values in the formula.

Profit from the business = $200000 - $150000

Profit from the business = $50000

Answer 2

The amount of Grant's "true" profits from his business is $50000. Profits are termed as the total revenues that the firm earns on selling the produced goods and services.

Given information are:

Total revenue from the business = $200000

The total cost that occurred in business = $150000

Computation of profit:

Profit = Total Revenue- Total Cost

Profit = $200000- $150000

Profit = $50000  

Therefore, the amount of profit the company earned is $50000.

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