\begin{tabular}{l} A company makes \( \$ 200,000 \) in a year and has \( \$ 150,000 \) in production costs, leaving them with \( \$ 50,000 \). The \( \$ 200,000 \) \\ represents \\ \( \begin{array}{l}\text { opportunity costs } \\ \text { revenue } \\ \text { profit } \\ \text { resource costs }\end{array} \) \\ \hline\end{tabular}
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Bonus Knowledge
The \( \$ 200,000 \) represents revenue, which is the total income generated from sales before any costs or expenses are deducted. This figure is essential for understanding a company's earning potential and is typically the first number that business managers analyze for financial performance. In real-world application, understanding the distinction between revenue and profit is crucial. While revenue tells you how much money comes in, profit reveals how much of that revenue is actually retained after expenses are paid. This knowledge helps businesses make informed decisions about investments, budgeting, and scaling operations effectively.