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Serenity, Mac's Firefly-class spaceship smuggles cattle from one planet to another. On one trip,...

Question:

Serenity, Mac's Firefly-class spaceship smuggles cattle from one planet to another. On one trip, Mac purchased 75 head of cattle at a price of $5,000 for every 25. At his destination, he sells them for $1,000 apiece. What is Mac's Revenue and Profit?

Revenue and Profit

Revenue is an amount or sum of money received by an entrepreneur from carrying out the trading activity. Revenue is the product of selling price per unit and number of units sold in the open market. Profit is the excess amount received by an entrepreneur after accounting for all the expenses incurred for carrying out business against total revenue.

Answer and Explanation:

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  • Mac's revenue is $75,000.
  • Mac's profit is $60,000.

Given Information:

  • Number of cattle purchased id 75.
  • Amount paid for every 25 cattle is $5,000.
  • Se...

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Accounting Profit: Definition & Formula

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Chapter 35 / Lesson 4
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In this lesson, you'll learn what accounting profit is and why it's important in the world of finance and business. You'll also examine some of the basic terminologies and the most common financial statements that include accounting profit.


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