The formula to calculate the Profit From Cost (P) is:
\[ P = R - C \]
Where:
Profit from cost refers to the financial gain obtained when the total revenue generated from business activities exceeds the total costs incurred in producing and delivering goods or services. It is a fundamental metric for assessing the financial health and performance of a business. Profit is calculated by subtracting the total costs from the total revenue.
Let's assume the following values:
Using the formula to calculate the Profit:
\[ P = 10,000 - 7,000 = 3,000 \text{ dollars} \]
The Profit is $3,000.