Profit Table and Scope

Profit Below Break-Even

A quantity below break-even has revenue below total cost and therefore negative profit.

highlighted = computed this step

Below break-even

At quantity 8, the point is still before the break-even marker.

q=8q=8
Profit readingsProfit is the vertical difference between revenue and total cost.profit around break-even01012$0$100$140revenuetotal costbreak-even q=10quantitydollars

Revenue and cost

Revenue is $80 and total cost is $92.

$80<$92\$80<\$92
Profit readingsProfit is the vertical difference between revenue and total cost.profit around break-even01012$0$100$140revenuetotal costbreak-even q=10quantitydollars

Loss

Profit is $-12. Interpretation: a negative profit means the fixed cost is not covered yet.

Π(8)=$−12\Pi(8)=\$-12
Profit readingsProfit is the vertical difference between revenue and total cost.profit around break-even01012$0$100$140revenuetotal costbreak-even q=10quantitydollars

Below-scope note

This is a model reading from exact lines, not a prediction that exactly that quantity will sell.

line reading, not demand proof\text{line reading, not demand proof}
Profit readingsProfit is the vertical difference between revenue and total cost.profit around break-even01012$0$100$140revenuetotal costbreak-even q=10quantitydollars