difference between net profit and revenue
There are several measurements of profit, including gross profit, operating profit and net profit. Gross profit is sales less the cost of goods sold. Cost of goods sold includes materials, labor and overhead. Operating profit is gross profit less sales expense, general expense and administrative expense. Net profit is operating profit less interest, taxes and other expense. Profit measurements are sometimes referred to as margins and are expressed as a percentage by dividing profit dollars by sales.
Revenue is integral to a business to cover the costs of producing and selling its goods or services. Without it, profit would not exist. Calculate total revenue by multiplying the price per unit by the quantity sold. For example, if a company sells 100 light bulbs at $3 each, the total revenue is $300.