Explanation:
Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question. Any profits earned funnel back to business owners, who choose to either pocket the cash or reinvest it back into the business. This is determined by comparing the income with manufacturing costs. Profit means the money made from the income which is more than the manufacturing costs or selling the product at a cost higher than the capital investment.
