What you'll learn
- Define revenue and expenses
- Calculate profit
A business sells goods or services. Revenue is money received from sales. Expenses are costs. Profit is revenue minus expenses.
Chapter 10 - What Is a Business?
Tiny Lemonade Stand
Calculate revenue, expenses, and profit.
5-8 min
Free lesson
Interactive exercise
Lemonade stand math
Sell 18 cups at $2 each, then subtract business expenses.
Revenue
$36
Expenses
$16
Profit
$20
Revenue: 18 cups x $2 = $36
Expenses: Lemons and sugar $9 + Cups $4 + Sign supplies $3 = $16
Profit: $36 - $16 = $20
Expenses: Lemons and sugar $9 + Cups $4 + Sign supplies $3 = $16
Profit: $36 - $16 = $20
Lesson Progress
Finish the activity to complete this lesson.
2 On Finance provides general educational information and does not provide individualized financial, investment, tax, or legal advice.