NotMyOldRedditName@lemmy.worldtoMildly Infuriating@lemmy.world•Amazon Artificially Discounting Items $0.01 Below the Free Shipping LimitEnglish
0·
3 days agoNon profit doesn’t mean no profit.
Non profits make enough profit to pay their employees, rent, and any other business needs, or they get money from other sources. They still need and make money to operate.
For a company to succeed, there must be profit, or have an outside source of funding.
You cannot pay rent, employees or other business expenses with revenue and no profit without going into debt.
Profit is revenue - cost of goods.
If you make a widget and it costs you $100 to make, and you sell it for $110, you have $10 profit. Then you have all the other expenses that it takes to run a business, lets say that’s $200.
Your revenue is $110
You profit is $10
Additional Expenses: $200
You NET profit (AKA Net Income) is $-90