Inside the context of enterprise finance management:
“the full amount that a certain sale of products can create as an entire is called sales”
whereas;
“earnings is the net quantity that is left after bearing all of the costs”
For example:
Henry purchased 30 laptops for almost $30,000. Now he wants to sell them at a good price. He fixes the selling price of all the laptops as $37,500. After the sale of all units, the total revenue generated will be $37,500 and the profit will be $7,500.
Point To Ponder!
A revenue can be generated without considering the profit income. But you can never estimate the profit value until you obtain the total revenue. The maximum profit calculator helps you in this regard. You can immediately calculate both revenue and profit by using it which makes you capable of managing your expenses and earning high profits.
The basic revenue function equation that is used to find the maximum profit and revenue is as under:
$$ R = P*Q $$
Where:
R = Maximum Revenue
P = Price of products at maximum
Q = Total quantity of items offered at maximum demand
Here the free revenue function calculator makes use of this expression to estimate the margin of profits earned from the sale of goods.
The following equation is used to calculate the maximum profit earned after you make sales:
$$ \text{Maximum Profit} = \text{Maximum Revenue} - \text{Purchase Price} $$
Here we will be solving a couple of examples to find the value of the maximum profit and revenue. Stay in touch!
Example #01:
200 mobile phones are purchased at the cost rate of $140 per unit. How do we calculate the maximum profit when the price of each mobile phone is set at $156?
Solution:
The purchase price per mobile phone is $140, and you have purchased 200 units. Let's calculate the total purchase price:
$$ \text{Purchase Price} = 200 \times 140 $$
$$ \text{Purchase Price} = 28,000 $$
Finding the maximum revenue:
$$ R = P \times Q $$
$$ R = 156 \times 200 $$
$$ R = 31,200 $$
Finding the maximum profit:
$$ \text{Maximum Profit} = \text{Maximum Revenue} - \text{Purchase Price} $$
$$ \text{Maximum Profit} = 31,200 - 28,000 $$
$$ \text{Maximum Profit} = 3,200 $$
The maximum revenue calculator also displays similar results but more quickly, allowing you to keep your business operations running smoothly.
A sales is continually recorded at the income announcement for accounting purposes. groups spend revenues to purchase an asset. this is why revenue can't be taken into consideration as an asset itself.
within the identical 12 months, the sales fantastic approach all the state taxes that are made by way of the business are large than the debt offerings paid at the country bonds. these money owed are paid with the aid of the general Fund.
Taxes are the sales that are accumulated on earning or purchases via the authorities of the state. The most not unusual varieties of tax encompass wealth tax, income tax, property tax and organisation tax.
