Meet Tom and his company, TAK. TAK is all about making tourists happy by showing them around with cool vehicles. Let's dive deep into TAK's financial journey!

• Fixed Costs 🏢

  • Definition: Costs that stay the same regardless of how much you produce or sell.
  • TAK's Real-World Example: Tom spent a lot on a three-storey building. No matter how many tourists TAK serves, the cost of this building remains the same.

• Revenue 💰

  • Definition: Money coming in from selling goods or services before taking out any costs.
  • TAK's Real-World Example: Money Tom gets from tourists who use TAK's travel services.

• Profit 🤑

  • Definition: What's left over after you subtract all the costs (like fixed and direct costs) from the revenue.
  • TAK's Real-World Example: In his first year, Tom didn’t make any profit because the money he earned (revenue) was lesser than what he spent.