A new bridge was put in to connect two cities. The cost of the bridge was $5,000,000.00. In order to pay off that amount a toll booth was placed on the bridge charging each car $1.60 to cross over. The two cities want to pay off the building cost in a year plus make a $250,000.00 profit by the end of the first year. How many cars will have to pass over the bridge in the first year to pay off the building costs and provide the cities with a $250,000.00 profit?

A profit is the gain you receive on an investment you make.  This includes interest earned on a savings account.  However, in business, a profit is the amount made above and beyond what it cost you to buy a product (unit cost).  For example, if you buy pens to sell and you buy 50 pens for $5.00 each and then you sell each pen for $12.00, when you sell a pen for $12.00 you then subtract your cost of $5.00 leaving you a profit of $7.00 (also referred to as the gross profit). From the gross profit you must then subtract your overhead expenses (or operating expenses) leaving you a net profit.... Show more

A profit is the gain you receive on an investment you make.  This includes interest earned on a savings account.  However, in business, a profit is the amount made above and beyond what it cost you to buy a product (unit cost).  For example, if you buy pens to sell and you buy 50 pens for $5.00 each and then you sell each pen for $12.00, when you sell a pen for $12.00 you then subtract your cost of $5.00 leaving you a profit of $7.00 (also referred to as the gross profit).

From the gross profit you must then subtract your overhead expenses (or operating expenses) leaving you a net profit.  In order for a business to survive it must have a continuous net profit and very little net loss (when the overhead expenses are greater than the gross profit).

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