Definition of

Profit

Profit

Income minus all expenses.

Example: Sam's Bakery received $900 yesterday, but expenses such as wages, food and electricity came to $650. So the Profit was $900 − $650 = $250.


But if the income is LESS THAN the expenses it is called a "Loss".

Example: On Monday last week Sam's Bakery received $480, but expenses were $520. And $480 − $520 = −$40, which is a $40 Loss