How was profit calculated?

Profit is calculated by subtracting total expenses from total revenue. This can be expressed with the formula: Profit = Total Revenue - Total Expenses. Total revenue includes all income generated from sales, while total expenses encompass all costs incurred in the process of generating that income, such as production costs, operating expenses, and taxes. The resulting figure can be categorized as gross profit (revenue minus cost of goods sold) or net profit (after all expenses).