What is sales revenue?
Revenue is the income earned by a business over a period of time, eg one month. The amount of revenue earned depends on two things - the number of items sold and their selling price. In short, revenue = price x quantity.
How do you work out profit?
Put simply, profit is the surplus left from revenue after paying all costs. Profit is found by deducting total costs from revenue. In short: profit = total revenue - total costs.
For example, if a firm has a total revenue of £100,000 and a total cost of £80,000, then they are left with £20,000 profit.