markets, terminologyLet say I have $1000, and I buy $100 of oranges from the farmer, and employ a man to help me and pay him $30, and sell the oranges for $300.
So, in this case, what is my profits, revenue, turnover and income?
Turnover is used to mean different things in different contexts. It can mean the same as revenue. It can also mean the rate at which staff or capital assets are replaced - but from the context of this particular question, it can’t be that.
In a business with no balance sheet and a sole owner, income and profits are the same thing. As soon as there’s a balance-sheet involved, that is no longer true: however, in this question, there’s no balance sheet.
Revenue / turnover is the aggregate value achieved of all sales in a defined period: in your case, that’s $300.
In this very simple example, income/profits equals revenue/turnover minus total costs. In this case, revenue/turnover is $300. Total costs are $100 (cost of oranges) plus $30 (cost of the person you have employed); that gives total costs of $130.
So income/profits are $300 - $130 = $170.
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