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Profit Pizza

Level 1 of 10 · Understand revenue − expenses = profit, then profit margin.

One night's sales

The pizzeria sold $200 of pizza. Ingredients cost $60, wages $40 and other expenses $20.

Revenue

$200

  • Ingredients$0
  • Wages$0
  • Other expenses$0
  • Profit$200
Ingredients$0
Wages$0
Other expenses$0

Profit left on the pizza: $200

Profit is the slice nobody spent — revenue minus every expense.

Amounts in New Zealand dollars. Tax is excluded from these examples, so 'profit' here means revenue less the expenses shown.