The till is not the profit

In our full-sellout version, all eight bookmarks sell for €3 each. The till receives €24. Tally calls it all profit. Cash brings back the cost list: €16 was needed to make and offer the batch.

€24 revenue minus €16 listed costs leaves €8. Because the whole batch has sold, we can call that simplified profit after those listed costs. It is before paying for time, possible tax and any other costs not in the exercise. The number arriving in the till and the amount earned after costs are different jobs for different numbers.

What you will learn

Tell sales revenue apart from simplified profit after the listed costs.

Worked example

Revenue: 8 × €3 = €24. Listed costs: €16. Simplified profit after all stock sells: €8, before unmodelled costs.

Try the stall simulator

Use the stall simulator below. Slide from 0 to 8 sold and watch the cash result and the stock change. Only a full sell-out turns the €8 into a simplified profit. While bookmarks are left, the balance is a cash result, not accounting profit or loss.

Your paper activity

Write three labels: revenue, listed costs and simplified profit. Place €24, €16 and €8 under the correct label. Explain each in your own words.

For the grown-up

Do not imply the remaining €8 is tax-free, a wage or a guaranteed future result.

Next lesson: The quiet-stall surprise.

Illustrations made with AI.