Set a profit goal.

Setting a profit goal should include the following considerations:

• The difference between making a profit and losing money is determined by comparing sales revenue to costs and expenses.
• Profits may be increased by raising prices to boost income, or by lowering prices to boost sales volume.
• Profit margins can be adjusted.

Process/Skill Questions:

• What factors help a business set a profit goal?
• What role does the profit goal play in making business decisions?
• What are possible consequences of overestimating profit?
• How can profits be used to benefit the business?