Profit is just revenue minus expenses – in other words, all of the money that a company takes in minus all of the money that it pays out. Profit is basically how much money a company actually makes – if I sell you a book for $10 but it cost me $7 to buy it and $6 to ship it to you, I haven’t actually made any money (I’ve actually made a loss), despite bringing in $10 in revenue. Profit is also sometimes referred to as a company’s “bottom line”.

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