Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

Practice this question and more.

If a business has total expenses of $150,000 and total revenue of $200,000, what is the profit?

A. $50,000
B. $150,000
C. $200,000
D. $100,000

The correct answer is: A. $50,000

To determine profit, you simply subtract total expenses from total revenue. In this case, the total revenue is $200,000, and the total expenses are $150,000. Calculating it gives: Profit = Total Revenue - Total Expenses Profit = $200,000 - $150,000 Profit = $50,000 This shows that the business has generated a profit of $50,000 after covering its expenses. Recognizing how to calculate profit is fundamental in business, as it indicates the financial health and viability of a company. Each of the other amounts represents figures that do not accurately reflect the profit as per the given revenue and expense context.