Fair enough.

So my operating profit is really my profit because I don't have to pay taxes on it.

Minus 50,000.

So I'll do a line here. I'll subtract that from that.

And I'll write it as a negative number because we're going to subtract it from the gross profit.

In order for this to come out to be zero, the gross profit has to be 500,000.

But here you see it means very, very different things.

So this is a break even scenario, where I sell 500,000 cupcakes at 2 per cupcake, with this being the cost of goods.

This is really important to pay attention to, because so many people say, oh, a company made this much.

You might say, oh that's great! You're making a million dollars on your cupcake factory in this scenario, and oh no, we're not done yet.

And at least it'll give you a sense of how revenues, gross profit, operating profit, pre tax income and net income really are different.

And then if you subtract your costs from your revenue, or if you just add these two numbers, because this one is negative, you have your gross profit.

Just kind of the money I'm getting from selling the cupcakes, and that term is called gross profit.

The company earned 300 million on sales of 4,000 million.

It is a better business model.

I mean, how big is the group overall?

Have a look at the gap.

And it has been a powerful marketplace differentiator, increasing sales and profits.

Company A made 1 per share. 1 of EPS.

Mom and pop stores will turn a profit in the new fiscal year.

I made a good profit by selling my car.

And when they produce their crops, they sell the surplus on marketplaces.

There is no doubt about what they have done.

The tickets cost 29 each.

If you and I one sell individually what little we produce,

And so I had a total expense or total cost of goods sold of 1 million.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

He made a profit of ten thousand dollars on the sale.

I made a good profit by selling my car.

So what's the profit going to be? So let me write this down.

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

Before I think about how much does it cost for me, all of the overhead expenses.

In proportion as the sales increase, the profit will rise.

The rise in house prices enabled him to sell his house at a big profit.

And then they benefit through the exposure, advertising and linked sales.

That's kind of a lot of money

Minus 500,000.

This is Earnings Per Share, not total earnings.

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

This is what the owners of the company get before they pay the government.

(Laughter) But I know it's the bottom line, or one's perception of it, that motivates people in the end.

So already we have some new nuance on profit.

So it's 1 million per year.

And your cost of producing that incremental cupcake is a lot lower, so you're just like, well, as long as I charge something more than that,

So, what brands can do, and companies, is pay dividends to consumers, be a brand that lasts, offer transparency, promise you're going to be there beyond today's sale.