Knowing about total revenue and total profit is really important for understanding how businesses work.

Total Revenue (TR):

• This is the total amount of money a business makes from selling its products or services.
• You can find it by using this formula: $TR = Price \times Quantity$

Total Profit (TP):

• This is what a business keeps after paying all its costs.
• You can calculate it with this formula: $TP = TR - Total Costs$

Key Differences:

1. Nature: TR shows the money coming in; TP shows how much profit is left.
2. Usage: TR helps businesses set prices, while TP shows how successful they really are.
3. Decision Making: Businesses look at both TR and TP to see how well they’re doing.

Understanding these differences can help businesses make smart choices!