π Here's where your money goes
Total Sales (money that comes in)
$70
π Profit (that's yours!)
$35
π Nice work! That's profit in your pocket!
π§ What does it all mean?
π° Sales β This is the money you get when someone buys your polo. But you don't get to keep all of itβ¦
π Costs β Before you can sell it, you had to make it, pack it, ship it, and let people know about it. All of that costs money. You pay those costs first.
π Profit = the tail! β After you've paid for everything, what's left over is your profit. That's money you actually keep. The bigger the tail, the better the business!
π¦ More fish = more money β but also more costs! β When you sell 10 polos instead of 1, you make more sales. But you also spend more on making, packing and shipping. Profit grows when you keep your costs low and sell lots! π£