What is Profit?

What Is Profit And Loss? Find Out In Not In Schools first ever video. We discuss what profit and loss are so you can use it to your advantage.

Transcript:
Hi!
You’re, not in school.

Today, I’m going to talk about profit and loss.

For instance you’re a baker.
You would make money by selling your cakes.
Now to sell cake you have to make cake, and to make cake you need raw material like, flour, sugar, eggs and milk.

So you go to the store and buy, flour for 6 dollars, the sugar for 5 dollars, the eggs for 4 dollars and the milk for 5 dollars.
So in total you spent 20 dollars on ingredients.

Let's say you sold your cake for 25 dollars
This means you made 5 dollars
How? Well since you spent 20 on ingredients but made 25 dollars 25 - 20 = 5

But profit isn’t always achieved, let’s say you weren’t able to sell that cake and the cake got eaten by a rat
Then you would have just spent 20 dollars on ingredients and made 0 dollars then 0 - 20 = -20 so you lost 20 dollars as the name implies, loss.

So what is profit after all? It is when you spend money on something and make more money out of that something than you spent. And loss is when you don’t.