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Total Revenue
Total revenue (TR) = price per unit multiplied by quantity sold. Total revenue is the total amount of money that a company brings in from the sale of its products or services. It's calculated by multiplying the price of a product or service by the number of units sold.
For example, let's say a company sells widgets for $10 each and sells 100 widgets in a month. The total revenue for that month would be $1,000 (100 x $10).
Total revenue is different from profit, which is the total revenue minus the company's costs. For example, if the company's costs for producing the widgets were $500, the profit for that month would be $500 ($1,000 total revenue - $500 costs = $500 profit). Total revenue is an important metric for businesses to track, as it provides insight into the overall performance of the company.
