What is the price of the goods and what is the cost of the goods. what is the profit and what is the cost of the company
Price is the monetary value of a good which is paid by the customer once he purchase a thing. The cost of goods are all the costs incurred during manufacturing of the product. Profit or loss is the difference between the revenues and the total cost of goods sold.
Total Revenues= price of one product* no of products sold
Total cost of goods= cost of one good* no of good manufactured or sold
Profit or loss= Revenue- Total cost of goods sold
E.g a toy may cost Rs50 to be manufactured and it may be priced as Rs.75. 100 units of such toy could be produced.
Thus Total Revenues=75*100=7500
Total cost of goods=50*100=5000
Profit = 7500-5000=2500
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