$1,000 IS THE PROFIT FOR THE BUSINESS.
Total Revenue 3000
Less:
Cost of Goods 1500
Total Selling Expenses 500 (2000)
Net Profit 1000
In selling goods, total revenue is equivalent to the total sales of the goods.
Cost of goods involves the direct materials, direct labor, and variable overhead involved in producing or manufacturing the goods sold.
Selling Expenses are expenses incurred to sell the product, it includes the salaries and wages of personnel under the sales department, advertising costs, and other expenses incurred to sell the goods.
